After Strait Of Hormuz Disruption, Where Did India Get 60% of Its LPG to Meet Domestic Requirement?

India has significantly changed where it buys liquefied petroleum gas (LPG) in 2026. The shift came after disruptions in the Strait of Hormuz amid the escalating US-Iran conflict affected shipments from major Gulf suppliers.

According to data from the commodity analytics company Kpler, LPG exports from the US to India have increased to 3.6 million tonnes from January to July 2026. In contrast, exports from the UAE, Saudi Arabia, Qatar, and Kuwait to India during the same period amounted to 5.3 million tonnes. This trend is crucial for India since the country needs to import almost 60 per cent of its LPG.

Previously, about 90 per cent of India’s LPG imports were sourced from Gulf nations. Most of these imports were via the Strait of Hormuz.

US Becomes India’s Biggest LPG Supplier

The US has become the biggest individual supplier of LPG to India. The transition became very evident in July. The amount of LPG imports by India from the US in July reached 896,000 tonnes, which is 24 per cent higher than in June.

Meanwhile, the supplies of these commodities by their traditional suppliers from the Gulf decreased dramatically. The UAE’s supplies went down 35 per cent from June and were at 102,000 tonnes in July. No cargoes of LPG from Saudi Arabia were imported to India in July. Supplies from Kuwait decreased 43 per cent from June to 33,000 tonnes. Only 19,000 tonnes of LPG were delivered by Qatar.

It became particularly evident when compared to January. While in January the US supplied just 268,000 tonnes of LPG to India, the UAE supplied 826,000 tonnes. By July, the US share in the LPG imports to India reached 73%, while in January it was 12 per cent.

The UAE’s share fell from 37 per cent to 8.2 per cent. Qatar’s contribution dropped from 18.7 per cent to 1.5 per cent. Kuwait’s share fell from 15 per cent to 2.69 per cent.

India Signs Long-Term US LPG Deal

India has also taken steps to secure supplies beyond the immediate crisis. To reduce its dependence on Gulf shipments, India secured a long-term agreement under which state-owned refiners will import 2.2 million tonnes of LPG from the US in 2026.

India’s total LPG imports also increased in July. The country imported 1.23 million tonnes during the month. That was the highest level in four months and about 7 per cent higher than June. Apart from the US and Gulf nations, India also sourced LPG from Iran, Oman, Iraq, Argentina and Algeria.

LPG Supplies Secured Until September

Industry sources said India has secured enough crude oil and LPG supplies until September. This has reduced immediate concerns about domestic availability. However, the situation could become more difficult if tensions continue around the Strait of Hormuz or the Red Sea.

Both routes are important for global energy shipments. Any prolonged disruption could affect freight costs, delivery schedules and supply chains. Analysts expect India to continue diversifying its LPG suppliers even after tensions in West Asia ease.

The Gulf is likely to remain a major source of crude oil and LPG. However, refiners are expected to maintain a wider import basket to reduce the risks linked to dependence on one region.

IOC Plans Infrastructure Push for US LPG

India’s shift towards US LPG is also influencing its shipping strategy. Indian Oil Corporation (IOC), the country’s largest refiner, is reportedly planning to acquire a 50 per cent stake in very large gas carriers, or VLGCs.

A Reuters report citing a tender document said the move could help IOC support higher LPG imports from the US. If the proposal goes ahead, IOC would become the first Indian refiner to own VLGCs rather than relying mainly on chartered vessels.

The tender seeks vessels with cargo capacities between 80,000 and 93,500 cubic metres. The ships must also be no more than 12 years old. Industry estimates suggest state-run fuel retailers could increase US LPG purchases from 2027 despite higher freight costs.

“The biggest challenge in buying US LPG is not availability but freight rates,” an Asian LPG trader said.

For India, the shift shows how quickly global conflicts can reshape energy trade. With nearly 60 per cent of its LPG requirement met through imports, securing multiple supply routes has become increasingly important.