India Plans to Source 10% of LPG Imports From US by 2026

India plans to secure roughly 10 percent of its liquefied petroleum gas imports from the United States beginning in 2026, according to four refining-industry sources. The move is part of New Delhi’s broader strategy to diversify energy supplies, lessen dependence on Middle Eastern producers and narrow its trade deficit with Washington. State-run retailers Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. imported more than 20 million tonnes of LPG in 2024, over 90 percent of it from the Middle East. They began buying small volumes of U.S. cargoes in May after Beijing imposed a 10 percent retaliatory tariff on U.S. propane, which improved arbitrage for Indian buyers. New Delhi is also considering scrapping its own import tax on U.S. propane and butane to keep delivered costs competitive. The government has pledged to lift U.S. energy purchases by up to $15 billion, to at least $25 billion, and the two countries have set a goal of boosting total bilateral trade to $500 billion by 2030. Indian refiners expect LPG demand to grow 5–6 percent annually, reaching as much as 23 million tonnes in 2026, underscoring the need for alternative supply sources.