India’s US LPG Imports Hit Record As Middle East Disruption Reshapes Supply Chain

India’s liquefied petroleum gas (LPG) import pattern has undergone a sharp shift, with supplies from the United States expected to exceed 1 million metric tonnes in June, marking an all-time high.

The surge comes as India turns to costlier but reliable alternative suppliers following disruptions in the Middle East triggered by conflict in the region and restrictions around the Strait of Hormuz.

Traditionally, India has relied heavily on Middle Eastern producers for nearly 90% of its LPG imports, which stand at about 2 million tonnes per month.

However, the blockade and geopolitical tensions led to a significant supply shock, with imports falling to a low of 696,000 tonnes in April.

Supplies later recovered to 1.15 million tonnes in May as alternative sourcing increased.

To counter disruptions, New Delhi had already planned to raise US LPG imports to around 10% of total volumes as part of broader efforts to diversify energy sourcing and improve trade balance with Washington.

However, the crisis accelerated this transition, pushing Indian refiners to aggressively procure spot cargoes from the US at higher premiums to ensure uninterrupted cooking gas supply for households.

Industry sources said India is expected to import between 1.1 million and 1.2 million tonnes of LPG from the US in June alone.

Alongside this, shipments from the UAE are also recovering to around 300,000–400,000 tonnes, supported by deliveries routed through Oman’s Sohar port at a premium of about $100 per tonne over Saudi CP prices. Kuwait is also expected to supply around 45,000 tonnes this month.

State-run refiners have simultaneously increased domestic LPG production and prioritised household distribution.

Government measures, including faster rollout of piped gas connections and controlled consumption measures, have helped reduce overall LPG demand by an estimated 15–20%.

According to Kpler data, India imported 648,300 tonnes from the US and 134,700 tonnes from the UAE in May, while smaller volumes came from Iran and other traditional suppliers such as Saudi Arabia, Qatar, and Oman.

Preliminary June projections suggest imports of about 1.07 million tonnes from the US, 223,800 tonnes from the UAE, 116,200 tonnes from Iran, and 108,600 tonnes from Kuwait, with additional cargoes expected from Oman, Saudi Arabia, Algeria, Qatar, and Nigeria.

Analysts expect LPG flows from the Middle East to gradually stabilise as partial reopening of shipping routes improves supply visibility and eases global price pressures.