INDIAN ENERGY SECURITY- India’s dependence on US LPG has risen sharply because disruption around the Strait of Hormuz curtailed its traditional Gulf supplies

 India’s dependence on US LPG has risen sharply because disruption around the Strait of Hormuz curtailed its traditional Gulf supplies. The article’s central argument is that this is a strategic, supply-security-driven shift—not a permanent replacement of the Middle East.

Main points

• India imported 21.85 million tonnes of LPG in 2025, and imports met roughly two-thirds of domestic consumption; previously, around 85–90% of imports came from the Middle East.

• With Gulf cargoes disrupted, the US became India’s largest LPG supplier. Its share reportedly rose from about 12% in January 2026 to 55.4% in August, after peaking around 73% in July.

• The US can supply ample propane and butane because it is already the world’s leading LPG exporter. India has also increased domestic refinery LPG output and curtailed non-household LPG use to protect cooking-gas availability.

• US LPG takes roughly 30–45 days to reach India’s west coast, compared with about 3–7 days from the Gulf, usually via the Panama Canal. This requires more forward planning and locks up shipping capacity for longer.

• Higher US freight costs are partly offset by lower US Gulf Coast LPG prices and a more flexible daily Mont Belvieu price benchmark, compared with the monthly Saudi Contract Price used for Gulf LPG.

Strategic meaning

Issue	What it means for India
Supply resilience	India has found a credible alternative source when its overwhelmingly Gulf-centric LPG supply chain is disrupted.
Energy security	LPG is politically and socially sensitive because it is widely used as household cooking fuel; ensuring physical availability overrides purely commercial considerations.
Diversification	India is likely to retain some US LPG through annual contracts even if Gulf supply recovers, reducing dependence on one maritime chokepoint.
Trade diplomacy	Larger purchases of US energy can support the wider India–US trade relationship and bilateral trade negotiations.
Costs and logistics	A sustained US share above 50% would be expensive and operationally demanding because of the much longer voyage, even if US product prices remain competitive.
Maritime vulnerability	The episode underlines the strategic importance of the Strait of Hormuz: disruption there affects not only crude oil but also LPG, petrochemicals and household-energy security.

What is likely next

The article suggests that the US share above 50% is unlikely to endure if Gulf shipments normalize reliably, since Gulf LPG is geographically closer and ordinarily cheaper to deliver. However, India may institutionalize a meaningful US share—reported possibilities range from a minimum 15% under annual arrangements to as much as 25% in 2027—to create a standing insurance policy against future Gulf disruptions.

In short, Russian crude remains the prominent issue in India’s oil diplomacy, but US LPG has become equally significant in practical energy security: it protects domestic cooking-gas supplies, diversifies imports, and gives New Delhi greater leverage against disruptions in the Gulf. The displayed article is the source for these reported figures and assessments.