India is expected to import more than 1 million metric tons of liquefied petroleum gas (LPG) from the United States in June, marking a record monthly high as the country seeks alternative supplies following disruptions to Middle East trade routes.
The surge comes after the closure of the Strait of Hormuz during the U.S.-Israeli conflict with Iran, which disrupted shipments from the Gulf region that traditionally account for about 90% of India’s monthly LPG imports.
Industry sources said India is on course to receive between 1.1 million and 1.2 million tons of U.S. LPG this month, significantly higher than normal volumes, as refiners stepped up spot purchases to safeguard domestic fuel supplies.
LPG imports had fallen to 696,000 tons in April amid the shipping disruptions but rebounded to 1.15 million tons in May, according to government data.
New Delhi had previously planned to increase U.S. LPG purchases to roughly 10% of total imports as part of efforts to reduce its trade imbalance with Washington, but the Middle East supply crisis accelerated the shift.
Sources said Indian refiners paid elevated spot market premiums for U.S. cargoes as authorities prioritized uninterrupted cooking gas availability for households.
To ease supply pressures, the government also directed refiners to maximize LPG production, prioritized residential LPG distribution, and accelerated the expansion of piped natural gas connections.
These measures have already reduced India’s LPG consumption by an estimated 15% to 20%, according to one industry source.Meanwhile, supplies from the United Arab Emirates have begun recovering, with June arrivals expected to reach between 300,000 and 400,000 tons.
Sources added that the UAE has been offering LPG cargoes loaded from Oman’s Sohar port at premiums of about $100 per ton above Saudi contract prices, while Abu Dhabi National Oil Co has deployed several vessels to support shipments through the alternative export route.