India Diversifies LPG Imports amid West Asia Conflict, OMCs Cushion Price Shock
NEW DELHI: India significantly diversified its liquefied petroleum gas (LPG) import sources during the West Asia conflict, sharply increasing purchases from the United States, Iran, and several other countries to reduce its dependence on Gulf suppliers, while state-owned oil marketing companies (OMCs) absorbed much of the rise in global prices to protect domestic consumers.
Prior to the conflict, nearly 90 per cent of India’s LPG imports originated from West Asia, making the country highly vulnerable to geopolitical disruptions in the region. According to a Crisil report, the United States emerged as a major supplier by April 2026, accounting for nearly one-third of India’s LPG imports, a substantial increase from just 8 per cent in February. The diversification was supported by a 2.2 million tonne-per-year LPG supply agreement signed between India and the United States in late 2025. The long-term deal is equivalent to around 10 per cent of India’s annual LPG import requirement and has helped strengthen supply security.
Iran also returned to India’s LPG import basket, contributing around 6 per cent of total imports in April. In addition, India sourced LPG cargoes from countries including Argentina, Chile, France, and the Netherlands, reflecting a broader strategy to spread supply risks.
Despite heightened volatility in international LPG prices during the conflict, state-run fuel retailers absorbed a significant portion of the increase, limiting the impact on domestic consumers and helping maintain price stability in the retail market.
