India is expected to import between 1.1 million and 1.2 million tonnes of LPG from the United States during June, marking a record level. Before the intensifying conflict involving the United States, Israel and Iran, India sourced nearly 90 percent of its LPG requirements from West Asian countries, with average monthly imports standing at around two million tonnes.
The Iran-related crisis caused India's LPG imports to plunge to 696,000 tonnes in April. However, purchases from alternative sources helped restore supplies in May, when imports recovered to 1.15 million tonnes.
India had already planned to increase the share of American LPG in its import basket to 10 percent as part of efforts to improve trade balance with the United States. The crisis in West Asia has accelerated this transition.
To prevent any shortage of cooking gas within the country, the government has initiated several measures. Indian refineries have been instructed to maximize domestic LPG production. Household LPG distribution is being prioritized over commercial consumption. Authorities have also accelerated the expansion of piped natural gas connections, a move that could reduce LPG consumption by between 15 percent and 20 percent.
Imports from the United States have risen sharply. India imported 648,300 tonnes of LPG from the country in May, while June imports are expected to reach 1.07 million tonnes. Imports from the United Arab Emirates stood at 134,700 tonnes in May and are projected to range between 230,000 tonnes and 400,000 tonnes in June. Imports from Iran are expected to decline from 145,000 tonnes in May to 116,200 tonnes in June. Kuwait, which supplied limited volumes in May, is expected to provide around 108,600 tonnes in June.
Although American supplies have increased substantially, traditional Middle Eastern suppliers are gradually restoring shipments. India is expected to receive between 300,000 tonnes and 400,000 tonnes of LPG from the United Arab Emirates in June, while shipments from Kuwait are estimated at around 45,000 tonnes. Additional cargoes are also expected from Oman, Algeria, Qatar and Nigeria.
Experts believe that the partial reopening of the Strait of Hormuz in the coming months will strengthen LPG supplies from West Asia. Improved shipping conditions are expected to ease international prices and reduce India's dependence on costlier imports, providing greater energy security at a time of heightened geopolitical uncertainty.
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