Did Indian PSU Oil Companies Just Finalize a Historic LPG Deal with the US?
Click to start listening
Synopsis
In a landmark agreement, Indian public sector oil firms have secured a deal to import 2.2 MTPA of LPG from the US for 2026, marking a significant shift in sourcing strategies. This procurement promises affordable LPG for millions of households in India, showcasing the government's commitment to energy security amidst rising global prices.
Key Takeaways
- Historic deal for 2.2 MTPA LPG imports from the US.
- First structured contract for US LPG in India.
- Government aims to ensure affordable LPG for citizens.
- Collaboration with US producers enhances energy security.
- PM Modi's leadership focuses on minimizing consumer burden amid rising prices.
New Delhi, Nov 17 (NationPress) In a groundbreaking move, Indian public sector oil companies have successfully secured a deal to import approximately 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026, sourced from the Gulf Coast of the United States, as stated by Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday.
In a message shared on the X social media platform, he highlighted that this marks a historic milestone, declaring that “one of the largest and the world’s fastest-growing LPG markets is now accessible to the United States.”
“Our commitment to ensuring secure and affordable LPG supplies for the citizens of India has led us to diversify our sources,” the minister added.
“This key development signifies that Indian PSU oil companies have finalized a one-year agreement to import approximately 2.2 MTPA of LPG, which accounts for nearly 10 percent of our annual imports for the contract year 2026, marking the first structured contract for US LPG in the Indian market,” Puri noted.
This purchase utilizes Mount Belvieu as the pricing benchmark for LPG acquisitions. “A dedicated team from Indian Oil, BPCL, and HPCL traveled to the US and engaged in discussions with major US producers over the past few months, successfully concluding these negotiations,” he explained.
Under the guidance of PM Modi, PSU oil companies have been delivering LPG at some of the lowest prices globally to support our mothers and sisters.
“Despite global prices soaring by over 60 percent last year, PM Modi ensured that our Ujjwala beneficiaries continued to receive LPG cylinders at only Rs 500-550, even though the actual cost exceeded Rs 1,100,” the minister pointed out.
The Government of India absorbed costs exceeding Rs 40,000 crore last year to alleviate the burden of rising international LPG prices on our citizens,” he added.
Point of View
The nation aims to shield consumers from volatile global price fluctuations. The collaboration with US producers is a strategic move that could enhance India's energy landscape, aligning with broader economic goals.
NationPress
17/11/2025
Frequently Asked Questions
What is the significance of the LPG deal?
The deal is significant as it represents India's first structured contract for US LPG, enhancing energy security and diversifying sourcing strategies amidst rising global prices.
How much LPG is being imported?
Indian PSU oil companies are importing approximately 2.2 MTPA of LPG for the contract year 2026.
Who is the Minister of Petroleum and Natural Gas?
The current Minister of Petroleum and Natural Gas is Hardeep Singh Puri.
What impact does this deal have on consumers?
This deal aims to provide more affordable LPG supplies to Indian consumers, ensuring they are shielded from rising international prices.
What benchmark is used for LPG purchases?
The purchases are based on using Mount Belvieu as the benchmark for LPG acquisitions.
