Indian Oil companies make historic LPG deal as India finalizes a major agreement to import 2.2 million tonnes of LPG every year from the US Gulf Coast starting in 2026. Minister Hardeep Singh Puri called this deal a historic step and shared the news on X, noting that one of the world’s fastest-growing LPG markets has now opened up for long-term US supplies.
Moreover, the deal holds huge importance because it covers nearly 10% of India’s annual LPG imports. It is also the first structured US-to-India LPG contract designed specifically for Indian consumers. The price of the imported fuel will follow the Mount Belvieu benchmark, a major global price reference for LPG.
Additionally, officials from Indian Oil, BPCL, and HPCL spent months in the US discussing terms with top American LPG producers. Their efforts finally led to the completion of this long-term agreement, giving India more reliable and diversified energy sources.
Furthermore, the Indian government has made strong efforts to keep LPG prices affordable, especially for Ujjwala scheme beneficiaries. Although global prices went up by more than 60% last year, Ujjwala households still paid only ₹500-₹550 per cylinder. This became possible because the government covered the remaining cost, spending over ₹40,000 crore to support families.
Punjab has also gained from the Ujjwala Yojana, as millions of rural women received LPG connections. This reduced indoor air pollution and improved health for families who previously used wood or coal. Chandigarh, known for its clean urban planning, has also seen improvement in cooking practices with cleaner fuel.
In addition, India has become the second-largest LPG consumer in the world. Demand continues to rise, especially in northern states like Punjab, where households rely heavily on LPG for daily cooking. Experts say this new deal will help India meet its growing needs more securely.
As the country expands its energy network, long-term supply deals like this one help ensure stability. Cleaner cooking fuel also helps reduce pollution, protect women’s health, and improve quality of life.
In conclusion, Indian Oil companies make historic LPG deal marks a major leap for India’s energy security and consumer welfare. With strong government support and rising demand for clean fuel, this agreement will help families across India access safer, affordable LPG for years to come.
