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Why is India suddenly buying more cooking gas from America?

14 Aug7 min read· 📷 Ravi Kant

Indian state oil companies are negotiating long-term contracts to import more US liquefied petroleum gas. This move aims to protect India from energy disruptions in West Asia while helping to ease trade tensions with Washington.

3

Number of state refiners negotiating US contracts

Primary historic supply region: West Asia3

⏳ Time Machine

How today’s news fits into the bigger picture

  1. 2016

    Ujjwala Yojana launch

    India launched a massive campaign to provide clean cooking gas connections to rural families, causing LPG demand and import reliance to skyrocket.

  2. 2018

    First US oil shipments

    India began importing crude oil and energy products from the US as part of a strategic plan to reduce reliance on OPEC countries.

  3. 2024

    Red Sea crisis flares up

    Drone and missile attacks on commercial ships in the Red Sea forced oil and gas tankers to take longer routes, increasing shipping costs and highlighting supply vulnerabilities.

  4. Today

    India’s state refiners begin negotiating long-term contracts to import more LPG from the United States.

  5. What happens next?

    First shipments under these new US term contracts are expected to arrive in India by early 2027.

India is shaking up its energy import strategy. State-owned refiners—Indian Oil, BPCL, and HPCL—are actively negotiating long-term contracts to purchase more liquefied petroleum gas (LPG) from the United States. Traditionally, India has relied on West Asia for the vast majority of its cooking gas. However, persistent geopolitical conflicts in the Middle East, including maritime threats in the Red Sea, have highlighted the danger of over-reliance on a single supply corridor. By purchasing more American gas, India not only secures a stable energy source but also addresses a major political headache: its trade surplus with Washington. Under ongoing trade talks, importing high-value US commodities helps narrow this surplus, making India less vulnerable to potential tariff actions from a protectionist US administration.

💭 If you're wondering…

It may not lower prices immediately due to higher shipping costs from the US, but it will prevent sudden price spikes by securing a stable, long-term supply.

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