India has finalised its first-ever major structured contract to import Liquefied Petroleum Gas (LPG) from the United States, Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Monday. Public sector oil companies have concluded a one-year agreement to import around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for the contract year 2026, accounting for nearly ten percent of India’s annual LPG imports.
According to the Ministry of Petroleum and Natural Gas, the deal marks the first structured US LPG import contract for the Indian market and is expected to strengthen the country’s long-term energy security. The agreement is based on Mount Belvieu as the pricing benchmark for LPG purchases.
The Ministry informed that a delegation from IndianOil, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) visited the United States between 21 and 24 July 2025 and held discussions with leading LPG producers. These discussions have now concluded with the signing of the contract.
Puri said in a post on X that the arrangement reflects India’s ongoing efforts to secure reliable and affordable LPG supplies by diversifying sourcing options. He said one of the world’s largest and fastest growing LPG markets — India — has now opened up to the United States.
The Minister further said that under the leadership of Prime Minister Narendra Modi, public sector oil companies have been supplying LPG to domestic consumers at the lowest global price levels. As per the Ministry, despite global LPG prices rising by over 60 percent last year, Ujjwala beneficiaries continued to receive cylinders at around ₹500–550, even though the actual price exceeded ₹1,100. The Government of India bore an expenditure of more than ₹40,000 crore to protect families, particularly women, from the impact of international price fluctuations.