Indian State Refiners Aim to Buy More LPG From US as Part of Planned Deal
(Bloomberg) --
India’s state-owned refiners intend to buy more liquefied petroleum gas from the US at the expense of Middle Eastern supplies as part of a planned trade deal, people familiar with the companies’ plans said.
The buyers aim to take 10% of total LPG imports from the US, and pare long-term purchases from countries including Qatar, the United Arab Emirates, and Saudi Arabia next year, the people said, asking not to be named as the information is private. So far in 2025, the US has accounted for about 7% of India’s LPG imports, Kpler data show.
New Delhi — which levies a 2.5% import tax on LPG, ethane, propane and butane — has proposed abolishing that for US LPG, the people said.
India’s relationship with the US is in flux as the two nations seek to frame a new trade relationship after a period of strained ties that saw Washington impose punitive levies. Apart from LPG, President Donald Trump has also been lobbying for New Delhi to scale back or eliminate imports of Russian crude oil as part of drive to push for a settlement of the war in Ukraine.
For the South Asian nation — the world’s most populous country, which is also one of the fastest-growing major economies — LPG is a key source of fuel, used for cooking in both urban and rural areas. It is also used in autos.
In the fiscal year to March, India consumed nearly 31 million tons of LPG, with 60% from overseas. More than 90% of imports came under long-term deals with Middle East producers, nations that are far closer than the US.
India’s trade negotiations with the US have been roiled after Washington doubled tariffs on most of Indian imports to 50%, penalizing the nation for its purchases of Russian energy. Talks resumed last month, and with New Delhi signaling a willingness to boost US energy imports.
Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. didn’t reply to emails seeking comment.
(Updates to add detail throughout.)
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