India plans to increase its imports of liquefied petroleum gas (LPG) from the United States starting in 2026, aiming for the U.S. to supply around 10% of its total cooking gas needs. This move is part of a larger strategy to balance trade with Washington and reduce dependence on Middle Eastern suppliers, industry insiders have revealed.

Currently, over 90% of India’s LPG—mainly used as cooking fuel—is sourced from the Gulf region. But that may soon change, as Indian state-run fuel companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum begin exploring alternatives.

China’s recent tariffs on American propane have made U.S. supplies more attractive to Indian buyers. To support this shift, India also plans to remove import duties on U.S. propane and butane, which are used in LPG production.

A source close to the matter noted that India sees the U.S. as a reliable energy partner and wants to expand imports of both crude oil and LPG. Buying LPG on a delivered basis, similar to current crude purchases, would help minimize freight risks.

With domestic LPG demand rising by about 5–6% annually, India expects its total imports to hit 22–23 million tonnes by 2026. Expanding sourcing options is seen as essential to meeting this growing demand while protecting the country from supply disruptions.

India has also significantly increased its crude oil imports from the U.S. this year and has pledged to boost overall U.S. energy purchases by $10 billion. The two nations have committed to reaching $500 billion in total trade by 2030.

While pricing will ultimately determine how much LPG India secures from the U.S., the shift signals a key effort to diversify energy supplies and reduce geopolitical risk.