India Turns to US LPG Amid Disruptions in Middle East Trade
Synopsis
Key Takeaways
New Delhi, March 20 (NationPress) — The volume of liquefied petroleum gas shipments from the US to India has notably increased, now exceeding that of conventional suppliers from the Gulf region, according to a recent report. This shift is part of India's strategy to expand its LPG supply in response to ongoing conflicts in the Middle East.
The report by S&P Global highlights that India's weekly LPG imports dropped to 265,000 metric tonnes (mt) for the week ending March 19, 2026, a decrease from 322,000 mt recorded in the week ending March 5, 2026.
“India is intensifying its efforts to widen its LPG supply sources, including imports from the US, due to concerns regarding the availability of cooking fuel,” the report stated.
Historically, the Gulf region supplied approximately 60 percent of India's LPG needs prior to the escalation of the conflict.
Inflows from the Middle East to India have significantly fallen to just 89,000 mt during the week ending March 19, accounting for only 34 percent of total imports—the lowest proportion since January.
“Supplies from alternative regions rose to 176,000 mt during the week ending March 19, a stark contrast to the previous week when the Middle East dominated with 100 percent of imports,” the report cited data from CAS.
Concerns about LPG availability have been amplified on social media, with images of long queues and delays becoming widespread. However, an independent analysis by IANS asserts that India's energy infrastructure has adapted, evolving into a resilient system capable of handling external disruptions without compromising household requirements.
The government swiftly safeguarded household consumption by instructing oil marketing companies to ensure continuous supply for domestic consumers while imposing temporary limitations on commercial sectors such as restaurants and hotels.
Additionally, regulatory frameworks were established to avert market distortions driven by panic.
Through Operation Sankalp, the Indian Navy has facilitated the secure passage of merchant vessels in sensitive waters, while diplomatic efforts have aided in the movement of LPG tankers through affected routes. Several shipments have successfully reached Indian ports, alleviating supply anxieties.