India Turns To US And Iran For LPG As Supply Chains Shift

11 Jun 2026 CW Team

Shipments from the US more than doubled to 666,000 tonnes (t) in May compared with February levels, accounting for 55 per cent of India's total imports during the month according to energy cargo tracker Kpler. The increase followed annual purchase agreements signed by Indian state refiners with American suppliers that cover roughly 10 per cent of national LPG requirements, with initial shipments beginning in January. Analysts attributed the acceleration to the near closure of the Strait of Hormuz after attacks and escalations, which prompted buyers to tap alternative routes and cargo sources.

Before the disruption, Saudi Arabia and Kuwait together supplied nearly 90 per cent of India's LPG needs, but their share fell sharply after the conflict escalated on 28 February. In response, New Delhi resumed imports from Iran in March following the earlier halt in energy trade under external pressure, while also sourcing smaller cargoes from non-traditional suppliers such as Australia, Russia, Argentina, Congo, Angola, Nigeria and Cameroon to diversify procurement. The broader supplier mix aimed to strengthen supply security and reduce reliance on any single region.

Iran supplied 145,000 tonnes (t) in May, making it the second-largest supplier and accounting for nearly 12 per cent of overall imports, while overall Indian LPG imports rose by 25 per cent month-on-month in May. The shift has implications for shipping routes, inventory management and domestic pricing, and it underlines the role of long term contracts in ensuring continuity of supply during regional disruptions. Authorities and refiners continue to monitor freight risks and cargo availability as markets adjust.

India's liquefied petroleum gas (LPG) import basket underwent a notable shift in May as the United States (US) emerged as the country's largest supplier and Iran re-entered after a seven-year pause, reflecting a wider reshaping of supply chains amid heightened geopolitical tensions. The change came as disruptions in West Asia prompted state and private buyers to seek alternative sources to secure household and industrial fuel deliveries. The movement marks a significant reorientation from long-standing reliance on traditional Gulf suppliers. Shipments from the US more than doubled to 666,000 tonnes (t) in May compared with February levels, accounting for 55 per cent of India's total imports during the month according to energy cargo tracker Kpler. The increase followed annual purchase agreements signed by Indian state refiners with American suppliers that cover roughly 10 per cent of national LPG requirements, with initial shipments beginning in January. Analysts attributed the acceleration to the near closure of the Strait of Hormuz after attacks and escalations, which prompted buyers to tap alternative routes and cargo sources. Before the disruption, Saudi Arabia and Kuwait together supplied nearly 90 per cent of India's LPG needs, but their share fell sharply after the conflict escalated on 28 February. In response, New Delhi resumed imports from Iran in March following the earlier halt in energy trade under external pressure, while also sourcing smaller cargoes from non-traditional suppliers such as Australia, Russia, Argentina, Congo, Angola, Nigeria and Cameroon to diversify procurement. The broader supplier mix aimed to strengthen supply security and reduce reliance on any single region. Iran supplied 145,000 tonnes (t) in May, making it the second-largest supplier and accounting for nearly 12 per cent of overall imports, while overall Indian LPG imports rose by 25 per cent month-on-month in May. The shift has implications for shipping routes, inventory management and domestic pricing, and it underlines the role of long term contracts in ensuring continuity of supply during regional disruptions. Authorities and refiners continue to monitor freight risks and cargo availability as markets adjust.

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