India is planning to reduce imports of liquefied petroleum gas (LPG) from the Middle East as state-owned refiners prepare to ramp up purchases from the United States, according to sources familiar with the matter. The move aligns with New Delhi’s efforts to expand energy cooperation and secure a broader trade deal with Washington.

State refiners have already notified their traditional LPG suppliers in Saudi Arabia, the United Arab Emirates, Kuwait and Qatar of the potential reduction in imports. Although the exact size of the supply cut was not disclosed, earlier reports suggested that India aims to source around 10 per cent of its cooking gas imports from the US starting in 2026.

During Prime Minister Narendra Modi’s visit to Washington in February, India pledged to raise energy imports from the US from Rs 830 billion (USD 10 billion) to nearly Rs 2,080 billion (USD 25 billion). Both countries are targeting bilateral trade worth Rs 41.6 trillion (USD 500 billion) by 2030. Indian officials are currently in Washington for ongoing trade discussions.

India’s trade surplus with the US remains a sensitive issue for Washington. President Donald Trump has imposed a 50 per cent tariff on Indian goods — including 25 percentage points specifically to penalise New Delhi for continuing purchases of Russian oil. Washington has argued that Moscow is using oil revenues to fund its war against Ukraine. Trump recently said Modi had assured him that India would cease buying Russian crude.

Indian state refiners and Middle Eastern producers, including Saudi Aramco, did not respond to Reuters’ queries on the matter. Sources said the LPG cargoes from the US will be delivered on a cost, insurance and freight basis.

LPG, a mixture of propane and butane used primarily as household cooking fuel, is largely imported by state-run retailers Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, which supply it at subsidised rates to households.

Indian refiners are jointly seeking to procure about 2 million metric tonnes of US LPG through tenders in 2026. In 2024, the country imported around 65 per cent of its LPG requirement — equivalent to 31 million tonnes — with 90 per cent of the 20.4 million tonnes purchased under term contracts with suppliers in the UAE, Qatar, Kuwait and Saudi Arabia.

This year, India has also purchased smaller consignments of US LPG, taking advantage of favourable price differences as China — embroiled in a tariff dispute with Washington — slowed its imports. In April, reports suggested that India plans to remove import duties on select US products, including LPG, as part of a wider trade pact.

In 2024, India imported approximately 8.1 million tonnes of LPG from the UAE, 5 million tonnes from Qatar, 3.4 million tonnes from Kuwait, and 3.3 million tonnes from Saudi Arabia, along with smaller quantities from Bahrain and Oman.