Why In News?
The Union Petroleum Minister confirmed that the US now accounts for approximately 67% of India's LPG imports as of July 2026, up from an initial target of just 10%, following disruptions in West Asian supply routes.
What is LPG?
Liquefied Petroleum Gas is a flammable hydrocarbon gas liquefied under pressure for storage and transport, widely used as a clean, portable fuel.
Main components of LPG: Propane and butane
Why India Import LPG?
Rising domestic demand: India's total LPG consumption stands at around 31 million tonnes annually, driven by both household and commercial use.
Limited domestic production: Even at its highest post-crisis levels, India's domestic production increased by only 25-28% — insufficient to eliminate import dependence entirely.
Household cooking needs: LPG remains the primary clean cooking fuel for the majority of Indian households, especially post-Ujjwala Yojana expansion.
Industrial and commercial demand: Beyond households, restaurants, small industries, and commercial establishments rely heavily on LPG cylinders/bulk supply.
India imports about 65% of its LPG consumption; in 2024, about 90% of the 20.4 million tonnes imported came from just four Gulf countries — UAE, Qatar, Kuwait, and Saudi Arabia.
Shift in LPG import sources after West Asian disruptions: Before 28 February 2026, the Gulf region (UAE, Saudi Arabia, Kuwait, Qatar) supplied 81% of India's LPG imports; by May 2026, their share fell to just 16%, while the US share rose from 14% (February) to 55% (May) to 67% (July.
The government has diversified import sourcing to include Iran, Oman, Argentina, Nigeria, Algeria, Egypt, Australia, Russia, Congo, Angola, and Cameroon.
Source: THEHINDU
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PRACTICE QUESTION Q. "India's shift toward the United States as its largest LPG supplier reflects both a response to the crisis and a long-term energy security strategy." Discuss. 150 words |
