India has signed an agreement with the United States to import around 2.2 million tonnes of LPG in 2026, marking the country’s first structured, year-long deal for sourcing LPG from the U.S. The contract was finalised by India’s three state-owned oil marketing companies, Indian Oil Corporation, Bharat Petroleum Corporation Ltd., and Hindustan Petroleum Corporation Ltd., and is expected to cover nearly 10% of India’s annual LPG import requirements.

The agreement is benchmarked to the Mount Belvieu pricing system in the U.S., which is a globally recognised reference point for LPG. This pricing method is expected to offer greater predictability and help reduce exposure to volatile international rates. Officials noted that the deal represents a strategic effort to diversify India’s energy imports, which are traditionally dominated by supplies from the Middle East.

Also Read: Over 10.6 Crore Homes in India Now Use Affordable LPG, Says Hardeep Singh Puri

Union Petroleum Minister Hardeep Singh Puri described the pact as a significant step in enhancing India’s energy security, emphasising that stable LPG supplies are crucial for supporting domestic households and sustaining the rapid expansion of the Pradhan Mantri Ujjwala Yojana. The agreement also aligns with India’s broader goal of strengthening long-term energy partnerships and building resilience amid global supply uncertainties.

The move is seen as reinforcing bilateral energy cooperation between India and the U.S., while providing a reliable supply pipeline for one of India’s most widely used household fuels.

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