India Increases US LPG Imports as West Asia Crisis Hits Supply

India, the world’s third‑largest oil importer, has sharply raised its imports of liquefied petroleum gas (LPG) from the United States after supply disruptions in the West Asia region affected traditional Gulf exporters. Spot purchases and a term contract for 2.2 million tonnes per year in 2026 have pushed U.S. LPG to account for up to half of India’s total LPG imports, a significant rise from its usual 10% share.

The crisis in the Strait of Hormuz, a key chokepoint for Indian crude, LNG and LPG shipments, reduced Indian LPG consumption to about 14.7 million tonnes in the first half of 2026 and cut overall imports by roughly 28%. To mitigate the shortfall, state‑run refiners Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp are accelerating U.S. purchases. India also plans to source a quarter of its LPG imports from the United States in 2027, aiming to diversify supply, narrow its trade deficit with the U.S., and strengthen energy security.