US and Iran Account for Nearly Two-Thirds of India’s LPG Imports Amid Global Energy Disruptions

India's liquefied petroleum gas (LPG) import landscape witnessed a major shift in May, with the United States and Iran emerging as the country's top suppliers amid ongoing geopolitical tensions in West Asia. Together, the two nations accounted for nearly two-thirds of India's LPG imports, highlighting how global energy disruptions are reshaping trade flows.

According to data from energy cargo tracker Kpler, the US supplied 666,000 tonnes of LPG in May, accounting for 55% of India's total imports during the month. Iran followed as the second-largest supplier, contributing 145,000 tonnes or around 12% of total imports.

US Emerges as India's Largest LPG Supplier

The United States has rapidly strengthened its position in India's LPG market. Imports from the US more than doubled in May compared to February levels, driven by concerns over supply disruptions in West Asia and the near closure of the Strait of Hormuz.

Until last year, the US played only a limited role in India's LPG imports. However, annual procurement agreements signed by Indian state-owned refiners with American suppliers have significantly increased volumes since January.

Industry analysts believe the US will continue to play a crucial role in India's energy security if uncertainty in West Asia persists.

Iran Returns to India's LPG Import Basket

In a notable development, Iran became India's second-largest LPG supplier in May. The country supplied 145,000 tonnes of LPG, marking a significant return after India's energy trade with Iran had largely ceased seven years ago due to US sanctions and diplomatic pressure.

The resurgence of Iranian supplies comes at a time when traditional suppliers in West Asia, including Saudi Arabia, Qatar, Kuwait, and the UAE, have witnessed a decline in exports to India amid regional instability.

India Diversifies LPG Sourcing

To secure adequate supplies, India also imported LPG from several non-traditional sources, including Australia, Russia, Argentina, Congo, Angola, Nigeria, and Cameroon.

While overall LPG imports rose 25% month-on-month in May, they remained nearly 40% below February levels, indicating that supply conditions are yet to fully normalise.

Read more: RBI Gold Reserves Remain Steady at 880.52 Tonnes, Central Bank Denies Sale Reports .

Conclusion

The growing share of LPG imports from the US and Iran underscores India's efforts to diversify energy sources amid geopolitical uncertainty. As traditional supply routes face disruptions, India is increasingly relying on a broader network of suppliers to safeguard energy security and meet domestic demand.

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