First Structured Contract
Indian oil companies sign maiden pact to import LPG from US, says Minister Puri
This story was originally published at 12:21 IST on 17 November 2025
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NEW DELHI – India has concluded its first structured contract to import liquefied petroleum gas from the US, Petroleum and Natural Gas Minister Hardeep Singh Puri said Monday. "Indian public sector oil companies have successfully concluded a 1-year deal for imports of around 2.2 MTPA (million tonnes per annum) LPG, close to 10% of our annual imports - for the contract year 2026, to be sourced from the US Gulf Coast- the first structured contract of US LPG for the Indian market," the minister said on microblogging site X.
"This purchase is based on using Mount Belvieu as the benchmark for LPG purchases and a team of our officials from Indian Oil Corp. Ltd., Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd. had visited the US and engaged in discussions with major US producers over the last few months, which have been concluded now," he said.
The minister said the government had incurred a cost of over INR 400 billion last year in order to ensure that the burden of rising international LPG prices is not passed on to end-users. The Centre, in September, had approved 2.5 million additional LPG connections under the Pradhan Mantri Ujjwala Yojana, taking the overall connections to 105.8 million.
The scheme was originally launched in May 2016. Under the scheme, the government provides a deposit-free gas connection which covers the security deposit of the cylinder, pressure regulator, suraksha hose, domestic gas consumer card booklet, and installation charges.
The agreement to import LPG from the US comes at a time when US President Donald Trump last week said that his country is coming closer to making a "fair trade deal" with India. The US has slapped an additional 25% punitive tariff on Indian goods, on top of a 25% reciprocal tariff, citing New Delhi's continued purchases of Russian crude oil. Trade negotiations between both the countries hit a roadblock after India resisted opening its vast agricultural and dairy sectors. The US accounts for nearly 20% of India's total exports. In 2024-25 (Apr-Mar), India exported goods worth $86.51 billion to the US and had a trade surplus of $40.82 billion. End
US$1 = INR 88.60
Reported by Sagar Sen
Edited by Ashish Shirke
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