India has made a historic LPG deal with America. Due to which there will be no reduction in LPG supply to India. Discussions regarding this deal were going on for a long time. It was being said on many occasions from India that they are working on a big energy deal with America. Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday announced that Indian public sector oil companies have for the first time signed a one-year agreement to import LPG from the United States. Let us also tell you what information the Union Minister has given regarding this deal.
historic deal
The minister informed about this deal through a social media post on Monday and called it a “historic initiative” for the country’s LPG market. He said that this is a historic initiative. India, one of the world’s largest and fastest growing LPG markets, has become open to America. In our endeavor to provide safe and affordable supply of LPG to the people of India, we are diversifying our LPG sourcing. In a significant development, India’s state-owned oil companies have successfully completed a one-year agreement for the import of approximately 2.2 MT per annum of LPG.”
A historic first!
One of the largest and the world’s fastest growing LPG market opens up to the United States.
In our endeavor to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing.
In a significant development,
— Hardeep Singh Puri (@HardeepSPuri) November 17, 2025
what kind of deal
Highlighting India’s position as one of the largest and fastest growing LPG markets in the world, Puri said the new agreement is an important milestone in the country’s efforts to diversify LPG sourcing. According to the minister, Indian public sector companies have signed a contract to import about 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026. This quantity is about 10 percent of India’s annual LPG imports and will be sourced from the US Gulf Coast. He told that this is the first long-term contract related to American LPG for the Indian market.
Visited America several times
Puri said that this purchase has been kept on the benchmark of Mount Belview, a major pricing point for global LPG trade. He further said that teams from Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) had visited the United States in recent months to discuss with major US producers, which has now been successfully concluded.
60 percent increase last year
The Minister also highlighted the government’s commitment to ensure affordable cooking gas for Indian families, especially women benefiting from the Pradhan Mantri Ujjwala Yojana. He pointed out that despite global LPG prices rising by more than 60 per cent last year, Prime Minister Narendra Modi ensured that Ujjwala consumers had to pay only Rs 500-550 per cylinder, while the actual cost is more than Rs 1,100. To protect consumers from international price shocks, the Government of India bore the burden of more than Rs 40,000 crore during the year.