(MENAFN- KNN India) New Delhi, Nov 17 (KNN) Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday announced that India's public sector oil companies have finalised a one-year structured contract to import about 2.2 million tonnes per annum (MTPA) of liquefied petroleum gas (LPG) from the US Gulf Coast for 2026.

The volume represents nearly 10 percent of India's annual LPG imports and marks the first structured US LPG supply arrangement for the Indian market.

Puri described the development as a significant milestone, noting that one of the world's largest and fastest-growing LPG markets has now formally opened to US exporters.

In a post on X, he wrote, "A historic first! One of the largest and the world's fastest-growing LPG market opens up to the United States. In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing.”

The minister said India has been working to secure reliable and competitively priced LPG supplies by diversifying its sourcing base.

A delegation from IndianOil, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) visited the United States from 21–24 July 2025 to engage with major producers.

The discussions-anchored to the Mount Belvieu benchmark for LPG-culminated in the contract that has now been concluded.

Puri noted that state-run oil marketing companies have ensured household access to LPG at some of the lowest prices globally.

Despite a more than 60 percent surge in international LPG prices last year, Ujjwala beneficiaries continued to receive cylinders at a subsidised price of Rs 500–550, even though the actual market cost exceeded Rs 1,100.

Puri highlighted that the government absorbed the differential, spending more than Rs 40,000 crore to shield families from rising global prices.

The minister said the new sourcing arrangement for 2026 strengthens India's energy security and supports continued access to affordable clean cooking fuel for millions of households.

(KNN Bureau)

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