India eyes US LPG amid Middle East trade flow disruptions: Report
New Delhi, March 20
Liquefied petroleum gas loadings from the US destined for India have risen and surpassed volumes from traditional Gulf suppliers as the country diversifies its LPG supply amid Middle East conflict, a new report has said.
The report from S&P Global said India's weekly LPG imports fell to 265,000 metric tonnes (mt) in the week ended March 19, 2026, down from 3,22,000 mt in the week ended March 5, 2026.
"India is stepping up efforts to diversify its LPG supply base, including imports from the US, amid concerns about cooking fuel availability," the report said.
The Gulf region accounted for about 60 per cent of India's LPG consumption, prior to the start of the war.
The Middle East inflows to India declined to just 89,000 mt in the week to March 19, representing only 34 per cent of total imports - the lowest share since January.
"Alternative regional supplies increased to 1,76,000 mt in the week to March 19, up from zero the previous week when the Middle East accounted for 100 per cent of imports," the report cited CAS data.
In recent weeks, social media has amplified anxieties around LPG availability, with visuals of long queues and delayed deliveries circulating widely. However, India's energy architecture has evolved into a resilient, adaptive system capable of managing external shocks without compromising household needs, an independent analysis by IANS said.
The government quickly ring-fenced household consumption, directing oil marketing companies to maintain uninterrupted supply for domestic users while managing temporary constraints for commercial sectors such as restaurants and hotels, it added.
Further, it deployed regulatory measures to prevent panic-driven distortions in the market.
Under Operation Sankalp, the Indian Navy ensured the safe passage of merchant vessels in sensitive regions, while diplomatic channels facilitated the movement of LPG tankers through disrupted routes. Several shipments have successfully reached Indian ports, further easing supply concerns.
— IANS
Reader Comments
Good to see proactive steps, but what about the price? US LPG will likely be more expensive due to longer shipping. Will the subsidy cover it, or will household budgets be squeezed? A genuine concern for middle-class families.
The visuals of long queues on WhatsApp were scary. Glad the system responded. Prioritizing households over hotels was the right call. Aunties in my society can finally stop worrying about their next cylinder.
Interesting strategic shift. Strengthening energy ties with the US while reducing reliance on the Gulf is a significant geopolitical move, not just an economic one. India is building a more resilient supply chain.
This is a wake-up call. We need to accelerate our own domestic production and push for cleaner alternatives like biogas in villages. Can't keep importing forever. Jai Jawan, Jai Kisan... and Jai Vigyan!
While the quick response is commendable, the report says weekly imports have still fallen significantly. The "resilient system" narrative feels a bit premature if supplies are down. Hope the switch to US sources is smooth and doesn't cause delays.
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