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• LPG agreement in Indo-US
• LPG cylinder rates lower from 2026 onwards
• Approximately 10% of imports will come from the US

LPG price in India : The ongoing tariff tension appears to be easing. Tensions between India and the US over tariffs have gradually eased. India and America have signed a major deal on LPG. This is likely to reduce LPG prices in the domestic market. India has signed an agreement with the US to import approximately 2.2 million tonnes of LPG by 2026. According to this agreement, approximately 10% of India’s annual imports will come from the US.

LPG import will start in 2026 under this agreement. India’s public sector oil companies have signed this deal with American companies. Speaking about this, Petroleum and Natural Gas Minister Hardeep Puri said that this agreement is important in the background of US tariffs and that the US has given up its insistence on Indian agricultural products for a trade agreement.

Which companies signed this agreement?

India’s state-owned oil companies, namely Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, have signed a joint LPG deal with the US. The agreement is only for one year and in 2026, under this agreement, 2.2 million tonnes of LPG will be imported from the US. 10% of India’s total imports will come from the US next year. which will come from the US Gulf Coast and reach Indian ports directly.

India has to import 66% in a year. The highest LPG imports came from the Middle East, with 8.1 million tonnes from the UAE, 5 million tonnes from Qatar, 3.4 million tonnes from Kuwait and 3.3 million tonnes from Saudi Arabia. While imports may initially slow in 2025, imports of 2.2 million tonnes of LPG from the US are also expected to be significant in the meantime.

In 2024, India produced approximately 1.3 million tonnes of LPG, which is approximately 42% of total consumption, with Indian Oil producing the largest amount of LPG at 30,000 tonnes per year. The government plans to increase LPG production to 15% by 2030, with an annual growth rate of approximately 3.5% during this period.