New Delhi: In a significant step toward strengthening India’s energy security, the country’s public sector oil companies have finalized a one-year agreement to import Liquified Petroleum Gas (LPG) from the United States. Petroleum and Natural Gas Minister Hardeep Singh Puri announced through a social media post that the companies will procure around 2.2 million tonnes per annum of LPG, sourced primarily from the US Gulf Coast.
Government Focus on Diversifying Supply Sources
Emphasizing the importance of stable and affordable energy supplies, Minister Puri stated that the government has consistently worked to diversify its LPG sourcing strategy. This diversification, he noted, is aimed at ensuring secure and affordable LPG access for Indian households, particularly at a time when global energy markets remain volatile.
The minister highlighted that teams from Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) visited the United States in recent months to negotiate with major American LPG producers. These engagements have helped shape the new import arrangement, strengthening trade ties in the energy sector.
Read also: Indian Oil Corporation to Receive ₹14,486 Crore Compensation for LPG Under-Recoveries Over 12 Months
LPG at the Lowest Global Prices for Indian Consumers
According to Mr. Puri, India’s public sector oil companies, with strong support from the government, have consistently offered LPG to citizens at some of the lowest global prices in recent years. Even as international LPG prices surged by more than 60% last year, domestic consumers—especially beneficiaries of the Pradhan Mantri Ujjwala Yojana—continued to receive LPG cylinders at Rs 500–550, far below the actual market cost of over Rs 1,100.
Government Subsidy Eases Burden on Women and Low-Income Families
The minister underlined the government’s commitment to shielding vulnerable households from steep global price fluctuations. He noted that the Government of India absorbed over Rs 40,000 crore in costs last year to ensure that women, particularly in low-income rural households, did not bear the financial burden of rising international LPG rates.
A Step Toward Energy Security and Stability
The new import agreement with the United States is expected to further stabilize India’s domestic LPG supply chain, support household cooking needs, and reassure consumers amid unpredictable global energy conditions. With continued diversification and strong international partnerships, India aims to fortify its energy resilience while keeping essential fuels affordable for all citizens.
