Significant LPG Agreement Between India and the US
India has taken a significant step towards securing its energy needs. According to recent reports, Union Petroleum Minister Hardeep Singh Puri announced a crucial agreement regarding LPG imports between India and the United States. Government oil companies have signed a one-year contract to import 2.2 million tons of LPG from the US in 2026, which will account for approximately 10 percent of India’s annual requirements.
This structured deal with the US marks a first for India. Minister Puri emphasized that the country is consistently working to diversify its LPG sources and stabilize prices. In recent months, senior officials from Indian Oil, BPCL, and HPCL have engaged with major producers in the Gulf region, leading to this agreement.
Puri stated that efforts are ongoing under Prime Minister Narendra Modi’s leadership to provide LPG at the most affordable rates. He also noted that despite a 60 percent surge in international LPG prices, consumers under the Ujjwala scheme continued to receive cylinders for only 500–550 rupees, while the actual cost was nearly double. The government has subsidized approximately 40,000 crores last year to prevent additional burdens on the public.
This agreement comes at a time when discussions are intensifying regarding a significant trade deal between India and the US, with expectations that negotiations could reach a conclusion by the end of 2025. Reports suggest that the Trump administration may consider removing the 25 percent additional tariff on Indian products, initially imposed due to oil purchases from Russia.
Meanwhile, India has been diversifying its crude oil sources in recent weeks, aiming to reduce its dependence on Russian imports. Recent discussions between the two nations have shown a positive atmosphere, with officials optimistic about strengthening ties further.
