India’s Liquified Petroleum Gas (LPG) imports from the United States surged 145% in June compared to February levels, according to data from Kpler, a global real-time data and analytics provider cited by TOI (Business Today). This sharp increase reflects India’s urgent push to diversify supply sources after the US-Iran war and the Strait of Hormuz closure in March disrupted shipments from the Gulf, which previously supplied around 90% of India’s LPG imports.
Supply disruption and diversification
The Strait of Hormuz closure since March hit cooking gas imports more severely than crude oil procurement, TOI reported. In response, oil marketing companies are planning to increase LPG imports from the US beyond the current level of about 2.2 million tonnes annually, potentially doubling the contracted volume, according to a senior oil company executive quoted by TOI. India had signed a one-year structured agreement with the US in November 2025 to import nearly 10% of its annual LPG requirement during the 2026 contract year. Beyond the US, India has also sourced LPG from Argentina, Nigeria, Malaysia, and is evaluating Algeria as an alternative destination.
"During the conflict, we were not concerned about crude oil availability, but LPG supplies were a significant challenge," a senior oil company executive told TOI. "There are only a handful of LPG-producing countries outside the Gulf, so we had to identify alternative sources. We were able to secure supplies from the US, which helped meet our requirements during the crisis." The executive added that "the US has considerable additional LPG export capacity, making it an attractive source for diversifying our import basket."
US share climbs to 65% in June
Kpler data, as reported by TOI, shows the US share of India’s LPG imports rose steadily after the structured agreement took effect. The table below summarises the monthly shift:
| Month | US share of India's LPG imports |
|---|---|
| 2025 (average) | <8% |
| January 2026 | ~12% |
| February 2026 | ~13% |
| March 2026 | 37% |
| April 2026 | 40% |
| May 2026 | 55% |
| June 2026 | 65% |
Supplies from Middle East countries — UAE, Saudi Arabia, Qatar — plunged during the same period, with UAE, once India’s largest LPG supplier, seeing the steepest drop due to the Hormuz closure.
Can the US replace Gulf supplies?
Despite the rapid increase, analysts caution against over-reliance on US supply. Nikhil Dubey, Lead analyst at Kpler, told TOI that "while supplies from the US are likely to go up as part of India’s diversification strategy, reliance on supplies from the Middle East will continue." Dubey noted that before the conflict, the Middle East supplied around 90% of India’s LPG imports, and that figure, though reduced, is unlikely to decline meaningfully. He also pointed out that cargoes from the US have longer transit times, adding to costs.
Outlook and strategic implications
For commodity traders and procurement teams, India’s push to double US LPG imports underlines a structural shift in global LPG trade flows. The US is becoming a key swing supplier for Asian markets, while Gulf producers face reduced market share in India. However, the cost disadvantage of longer shipping routes and the logistical challenge of replacing nearly 90% of Gulf supply mean that India will remain exposed to Middle East volatility. Upcoming data releases from Kpler and India’s Ministry of Petroleum will provide further clarity on import volumes and contract renegotiations.
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