India Turns to U.S. LPG Supplies as Middle East Disruptions Reshape Trade Flows

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NEW DELHI, India — India is increasing imports of liquefied petroleum gas (LPG) from the United States, with shipments now surpassing volumes from traditional Gulf suppliers as the country works to diversify supply amid disruptions tied to the Middle East conflict, according to a new report.

Data from S&P Global shows India’s weekly LPG imports fell to 265,000 metric tons in the week ended March 19, 2026, down from 322,000 metric tons in the week ended March 5.

“India is stepping up efforts to diversify its LPG supply base, including imports from the U.S., amid concerns about cooking fuel availability,” the report said.

Prior to the conflict, the Gulf region accounted for about 60% of India’s LPG consumption. However, inflows from the Middle East dropped sharply to 89,000 metric tons in the week ended March 19, representing just 34% of total imports — the lowest share since January.

“Alternative regional supplies increased to 176,000 metric tons in the week to March 19, up from zero the previous week when the Middle East accounted for 100% of imports,” the report said, citing CAS data.

In recent weeks, social media posts have fueled concerns over LPG availability, with images of long lines and delayed deliveries circulating widely. However, an independent analysis indicated that India’s energy system remains resilient and capable of managing external shocks without disrupting household supply.

The government has prioritized domestic consumption, directing oil marketing companies to maintain uninterrupted LPG supply for households while managing temporary constraints in commercial sectors such as restaurants and hotels.

Authorities have also implemented regulatory measures to prevent panic-driven market distortions.

As part of Operation Sankalp, the Indian Navy has helped ensure the safe passage of merchant vessels through sensitive regions, while diplomatic efforts have supported the movement of LPG shipments along disrupted routes. Several consignments have already reached Indian ports, helping ease supply concerns. (Source: IANS)