Domestic LPG consumers may soon see some relief as India explores long-term imports of liquefied petroleum gas (LPG) from the United States, potentially keeping prices stable amid fluctuating global markets. (News18 Tamil)
State-owned oil firms – Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) – are reportedly seeking to acquire three of the largest LPG carriers from the United States by 2026, according to a tender document accessed by Bloomberg. (News18 Tamil)
These three companies collectively supply LPG to over 331 million domestic consumers, with more than 60% of the gas currently imported. While India has longstanding contracts with Middle Eastern suppliers such as Saudi Arabia, this marks the first instance of a major US deal for domestic LPG. (News18 Tamil)
The initiative comes against the backdrop of the ongoing US-China trade war, which has disrupted global supplies of cooking gas and petrochemical feedstocks. China, seeking to reduce its reliance on US shale imports, has turned to Middle Eastern suppliers, creating opportunities for India to secure steady shipments from the US. (News18 Tamil)
Middle Eastern producers, particularly Saudi Arabia, are reportedly lowering LPG prices to expand their share in the Indian market. Analysts suggest that increased competition between US and Middle Eastern suppliers could lead to more favourable pricing for Indian consumers. (News18 Tamil)
Experts indicate that with adequate supply and continuous imports from the US, LPG prices in India are likely to remain stable. “A long-term supply contract from the US could ensure high and uninterrupted imports, helping maintain price stability for domestic users,” said an industry analyst. (News18 Tamil)
However, prices may still be influenced by factors such as rupee fluctuations, international tariffs, and broader market conditions. Nevertheless, the emerging US-LPG contract is expected to provide a buffer against sudden price spikes, offering some optimism for household consumers. (News18 Tamil)
