US LPG shipments dominate India's imports as Middle East supply falters
With Gulf LPG shipments constrained by the war, the United States supplied over half of India’s LPG imports in August, a share that may recede if Middle East flows recover.
The war in the Middle East has disrupted Gulf LPG shipments to India, forcing the country to turn to the United States for fuel. U.S. exports surged from roughly 12% of India’s LPG imports in January to over 50% in August, peaking at 73% in July, according to Kpler data. Although U.S. cargoes involve longer voyages—30 to 45 days via the Panama Canal—and higher freight costs, they benefit from lower FOB prices and a daily spot-price benchmark that smooths price volatility.
India’s domestic LPG production has risen, cutting overall import needs, while the government has urged state oil firms to secure at least 15% of next year’s LPG imports through annual U.S. contracts. Experts warn the U.S. share could fall if Gulf supplies normalize, but ongoing trade talks and security concerns may keep American LPG a significant component of India’s energy mix through 2027.
Why it matters
India’s shift to U.S. LPG highlights how geopolitical tensions reshape global energy trade and affect fuel security.
In this story
