India's imports of liquefied petroleum gas (LPG) from the United States are set to top 1 million metric tons in June, a record high, according to industry sources cited by Reuters. The surge comes as New Delhi turns to costlier suppliers to offset disruption from West Asia following the US-Israeli war on Iran and the closure of the Strait of Hormuz.
Supply Disruption and Shift to US
Before the conflict, India depended on West Asian producers for 90% of its LPG imports, which totalled about 2 million tons per month, according to government data. The blockade of the Strait of Hormuz caused imports to plummet to as low as 696,000 tons in April. However, imports recovered to 1.15 million tons in May, the data showed. New Delhi had previously planned to raise US LPG purchases to about 10% of total imports as part of trade rebalancing with Washington, but the crisis accelerated spot buying. Indian refiners purchased unprecedented volumes at hefty spot market premiums, as the government prioritised maintaining uninterrupted cooking gas supplies, a trade source aware of the purchases told Reuters.
Recovery and Diversification
India is on track to receive about 1.1 million to 1.2 million tons of US LPG in June, while supplies from the United Arab Emirates have started to recover to around 300,000 to 400,000 tons this month, two sources at Indian refiners said. The UAE offered LPG cargoes loaded from Oman’s Sohar port on a free-on-board basis at a premium of about $100 per ton to Saudi CP prices, the sources added. Abu Dhabi National Oil Co deployed four to five vessels that get LPG up to Sohar port. Additionally, Indian refiners will receive about 45,000 tons of LPG from Kuwait in June.
Kpler data provides a detailed breakdown of import flows:
| Source Country | May 2026 (actual, tons) | June 2026 (scheduled, tons) |
|---|---|---|
| United States | 648,300 | 1,070,000 |
| United Arab Emirates | 134,700 | 223,800 |
| Iran | 145,000 | 116,200 |
| Kuwait | N/A | 108,600 |
| Others (Oman, Saudi Arabia, Qatar, Algeria, Nigeria) | Limited | Expected volumes |
Imports from Iran, mainly by small players with negligible links to the US, stood at 145,000 tons in May, while shipments from other traditional suppliers, including Saudi Arabia, Oman and Qatar, remained limited, according to Kpler.
Impact on Prices and Consumption
The government also asked refiners to maximise LPG output, prioritised LPG sales to households and accelerated the rollout of piped gas connections. These efforts have already started to reduce India’s LPG consumption by 15% to 20%, one of the sources said.
Outlook
The partial opening of the Strait of Hormuz will improve LPG supplies from West Asia in the coming months, which will help to reduce prices, the sources added. With US imports still elevated and West Asian flows gradually normalising, India's LPG supply mix is diversifying, though at higher cost in the near term.
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