India is planning to import LPG from America.
India and America are seen to have a steepness in relations. This is the reason that the pressure of American 50 percent tariff is seen increasing continuously on India’s companies. Now India’s petroleum companies have made such a plan, so that relations with America are also turned and pressure can be made to reduce tariffs. In fact, India’s petroleum companies are planning to confirm the long term supply of LPG. There is also the reason for this. Due to the trade war, the supply of cooking fuel and plastic from America has been greatly disrupted. According to Bloomberg report, government oil companies are planning to buy three very large gas careers of fuel to be obtained from the US by 2026 every month. These three government companies supply LPGs used in the stoves of more than 33.1 crore domestic consumers, out of which more than 60 percent is imported.
India wants to buy more energy than America
According to traders familiar with the case, this is the first time that India, which has a long -starred contract with countries including Saudi Arabia, is demanding a similar system for American LPG. This has happened when the government said that it is planning to buy more American energy to convince Washington to reduce the 50 per cent tariffs imposed in August. There has been no official statement from the Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation in this case. Nor has there been any response from the oil ministry.
Why is India growing difficult?
India is getting caught in more difficulties due to deteriorating business relations between America-China. LPG is one of the products that are affected by the growing tariff between the two largest economy, as China is turning to the Middle East and wants to exchange its goods from the American shell area. Meanwhile, the producers of the Middle East, including Saudi Arabia, who have been LPG suppliers in the Indian markets for a long time, are taking retaliation by cutting prices. Traders say that this can help increase fuel sales and reduce competition. Saudi Aramco has also told its customers that the future contract value of the LPG sold by it will affect the Asian market rates.