New Delhi, Nov 17 (UNI) In a historic development, India on Monday concluded a structured contract to import LPG from the US Gulf Coast for the contract year 2026, marking the first such structured US LPG contract for the Indian market
Petroleum Minister Hardeep Singh Puri said Indian PSU oil companies have successfully concluded a one-year structured contract to import around 2.2 MTPA of LPG from the US Gulf Coast for the contract year 2026. This represents close to ten percent of India’s annual LPG imports and marks the first such structured US LPG contract for the Indian market.
Describing the decision as a ‘’historic development,’’ the Minister noted that one of the world’s largest and fastest growing LPG markets has now opened up to the United States.
He said India has been consistently working to secure affordable and reliable LPG supplies by diversifying its sourcing options. As part of this effort, a team of officials from Indian Oil, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) had visited the United States from July 21 to 24 and engaged in discussions with major US producers. These discussions, based on Mount Belvieu as the benchmark for LPG purchases, have successfully concluded with the finalisation of the contract.
Puri said PSU oil companies have ensured the provision of LPG at the lowest global prices to households across the country. Even as global LPG prices surged by more than 60 percent last year, Ujjwala beneficiaries continued to receive cylinders at a subsidised price of about Rs 500–550, despite the actual cost exceeding Rs 1100.
The Government of India absorbed the burden, incurring an expenditure of over Rs 40,000 crore in the previous year to shield families—especially mothers and sisters—from the impact of rising international LPG prices.
The Minister emphasised that this new sourcing arrangement for 2026 is another step in strengthening India’s energy security while ensuring affordable access to clean cooking fuel for millions of households.
