India's imports of liquefied petroleum gas (LPG) from the United States are set to surpass 1 million metric tonnes in June for the first time, according to Reuters. New Delhi turned to more expensive suppliers after disruptions to LPG supplies from the Middle East and the Strait of Hormuz. India is expected to import between 1.1 million and 1.2 million tonnes of US LPG this month, marking a record high and reflecting a sharp shift in sourcing patterns for the country's cooking fuel requirements.
Supply Shift and Middle East Disruption
Before the US-Israel conflict with Iran and the disruption of shipping through the Strait of Hormuz, India relied on Middle Eastern producers for around 90% of its LPG imports, which average about 2 million tonnes per month, according to government data cited by Reuters. Following the disruption, LPG imports fell sharply to 696,000 tonnes in April. Supplies recovered to 1.15 million tonnes in May as refiners stepped up purchases from alternative sources, Reuters reported.
Even before the disruption, India had planned to increase purchases of US LPG to around 10% of its total imports as part of efforts to rebalance trade ties with Washington. However, the uncertainty surrounding Middle Eastern supplies accelerated spot purchases from the United States, according to trade sources cited by Reuters.
Supply-Side Intelligence
According to energy intelligence firm Kpler, India imported 648,300 tonnes of LPG from the United States in May, compared with 134,700 tonnes from the UAE. Imports from Iran stood at 145,000 tonnes, while shipments from traditional suppliers such as Saudi Arabia, Oman and Qatar remained limited.
Preliminary Kpler data for June show a significant ramp-up in US volumes:
| Source | May 2026 (tonnes) | June 2026 (preliminary, tonnes) |
|---|---|---|
| United States | 648,300 | 1,070,000 |
| UAE | 134,700 | 223,800 |
| Iran | 145,000 | 116,200 |
| Kuwait | – | 108,600 |
Additional cargoes are also expected from Oman, Saudi Arabia, Algeria, Qatar and Nigeria. India is expected to receive around 300,000 to 400,000 tonnes of LPG from the UAE in June, with the UAE reportedly offering cargoes loaded from Oman's Sohar port at premiums of about $100 per tonne above Saudi Contract Prices (CP), according to Reuters. Indian refiners are also expected to receive about 45,000 tonnes of LPG from Kuwait this month.
Trade sources told Reuters that Indian refiners bought unprecedented volumes of US LPG despite higher spot market premiums, as the government's priority was to ensure uninterrupted cooking gas supplies to households.
Demand-Side and Government Measures
To manage supply concerns, India asked refiners to maximise LPG production, prioritised household LPG sales and accelerated the expansion of piped natural gas connections. According to Reuters, these measures can help in reducing LPG consumption by 15% to 20%.
While US shipments have surged, supplies from traditional Middle Eastern exporters have begun to recover gradually, according to the report.
Outlook
The partial reopening of the Strait of Hormuz is likely to improve Middle Eastern LPG supplies in the coming months, which could help ease prices and reduce India's dependence on higher-cost imports from alternative sources, Reuters reported. For commodity traders and procurement teams, the key data points to watch are the monthly Kpler shipping data, government import statistics, and any further developments in the Strait of Hormuz. The shift in India's sourcing patterns for LPG, even if partly temporary, underscores the impact of geopolitical disruption on global energy trade flows and pricing dynamics.
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