India signs LPG import deal with USA

New Delhi, Nov 17: India has signed its first-ever one-year long-term agreement with the United States of America (USA) for importing Liquefied Petroleum Gas (LPG).

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced the agreement on Monday, calling it a historic step for the country’s LPG market.

Puri said the deal will help ensure a secure and affordable supply of LPG in the country and strengthen India’s energy security.

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A historic first!

One of the largest and the world’s fastest growing LPG market opens up to the United States.

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In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing.

In a significant development,…

— Hardeep Singh Puri (@HardeepSPuri) November 17, 2025

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Under this agreement, Indian public-sector oil companies will import around 2.2 million tonnes of LPG annually from the US—about 10% of India’s yearly LPG imports. The supplies will be sourced from the US Gulf Coast.

This is the first long-term arrangement that will directly link American LPG with the Indian market. The minister said teams from Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) held discussions with major US LPG producers in recent months, resulting in this successful deal.

Puri reaffirmed the government’s commitment to providing affordable cooking gas to households, especially women, under the Pradhan Mantri Ujjwala Yojana.

He noted that despite a global surge of over 60% in LPG prices last year, Ujjwala beneficiaries had to pay only ₹500–₹550 per cylinder, while the actual cost exceeded ₹1,100.

To shield consumers from international price shocks, the government bore an expenditure of over ₹40,000 crore.