Indian state-owned refiners have extended by a week the closing deadline for their first joint long-term tender to import liquefied petroleum gas (LPG) from the United States in 2026, trade sources said on Thursday. The deadline has now been moved to 17 October.

The move is part of India’s strategy to expand energy imports from the US and reduce its trade surplus with Washington — a key sticking point in past bilateral negotiations. Increasing American energy purchases is expected to support the prospect of a mutually beneficial trade agreement and help New Delhi avoid potential tariffs on Indian exports.

LPG, a mixture of propane and butane, is widely used as cooking fuel in India. It is primarily imported by state-run oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) — and sold to households at subsidised prices.

According to trade sources, the joint tender seeks the supply of around 48 very-large gas carriers (VLGCs), equivalent to 2 million metric tonnes of LPG in 2026.

The award of this tender could reduce India’s dependence on its traditional Middle Eastern suppliers and support the country’s fuel diversification drive. As of 2024, more than 90 per cent of India’s 20.5 million metric tonnes of LPG imports came from the Middle East.

India intends to source about 10 per cent of its cooking gas imports from the US starting in 2026, a move that underscores its efforts to diversify supply chains and strengthen energy security.