India to source 10% of cooking gas imports from U.S. starting 2026: Report

Currently, over 90% of India’s 20.5 million tonnes of LPG imports come from the Middle East.

But after China imposed tariffs on U.S. propane, Indian state-run retailers—Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp—began purchasing U.S. LPG in May.

The Indian government is expected to eliminate import taxes on U.S. propane and butane to encourage these purchases.

India, which has pledged to raise U.S. energy imports to $25 billion, also agreed with Washington in February to aim for $500 billion in bilateral trade by 2030.

This year alone, U.S. crude oil exports to India have more than doubled.

"We are looking to the U.S. as a reliable alternative source of both crude and LPG," one source told Reuters, noting India's need to diversify LPG suppliers beyond the Middle East.

Indian refiners prefer delivered U.S. LPG cargoes to mitigate freight risks, similar to crude procurement practices.

Demand for LPG is growing 5–6% annually, with imports expected to rise to 22–23 million tonnes by 2026.

The International Energy Agency forecasts India’s LPG demand to average 2.5% growth annually through 2030, reaching 37.7 million tonnes.

Pricing will ultimately determine final purchase volumes, a third source said. India's oil ministry and the three state refiners declined to comment.