The west Asia crisis has affected LPG supplies in India, as the Middle East accounted for a major chunk of the country’s imports. But post the conflict, there seems to be a change in the supply mix. The United States has emerged as one of the country’s largest LPG suppliers, accounting for nearly one-third of the import volume in April 2026 as against just 8 per cent in February 2026. The shift has been possible because of a 2.2 million metric tonne per annum LPG agreement with the US in late 2025, equivalent to roughly 10 per cent of India’s annual LPG import, according to Crisil Intelligence.
Indian buyers are also sourcing from Argentina, Chile, France and the Netherlands, further reducing reliance on the traditional Gulf suppliers like the United Arab Emirates, Saudi Arabia, Qatar and Kuwait. However, the diversification has its own trade-offs, including higher freight exposure and longer supply chains. While sourcing diversification and higher domestic production helped cushion the impact, the sector remains exposed to geopolitical developments, freight market disruptions and international price volatility. With signs of a deal between the US and Iran emerging, the situation could ease. One has to wait and see if India’s sourcing mix will persist post this too. Economics will once again be the key determinant of India’s LPG sourcing mix.
