India is getting serious about shaking up its cooking gas game.
Starting in 2026, India plans to import nearly 10% of its LPG (liquefied petroleum gas) from the United States, according to sources close to top refiners. That’s a big move away from the country’s heavy reliance on the Middle East, which currently supplies over 90% of India’s LPG imports.
Why this matters
India is the world’s third-largest oil consumer. It needs stable and affordable fuel, especially cooking gas, which powers millions of homes. Right now, most LPG comes from countries like Saudi Arabia, Qatar, and the UAE.
But things are changing fast.
America steps in
The US wasn’t always a popular LPG source for India. High shipping costs kept it out of the race. But now, China has slapped tariffs on US propane, making it cheaper for India to buy. This opened a window — and India’s oil companies stepped in.
IOC, BPCL, and HPCL — India’s top state-run fuel retailers — began buying US LPG in May. And now, they want more.
India may soon remove import taxes on US propane and butane, the key components of cooking gas, to make deals sweeter.
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The bigger trade picture
This isn’t just about gas. It’s about geopolitics.
India has promised to boost energy trade with the US by $10 billion, aiming for $25 billion soon. The two countries are also chasing a $500 billion overall trade target by 2030.
India already doubled its US oil imports this year. Now, cooking gas is the next big move.
What’s next?
India’s LPG demand is growing by 5-6% each year. By 2026, the country could import up to 23 million tonnes of LPG. Diversifying sources reduces risk, especially with the Middle East facing instability.
One official said they want delivered cargo from the US, just like crude oil deals. This helps avoid surprise shipping costs.
But pricing will decide everything. If the US can offer competitive rates, more deals will follow.
This is India betting big on energy freedom.
The move to source 10% of cooking gas from the US is more than numbers. It’s about breaking habits, cutting risks, and building global partnerships that go beyond oil barrels and gas cylinders.
And for once, it’s not the Middle East calling the shots.
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