Centre secures 1 mt LPG from US to bridge West Asian supply gap

The LPG deficit was around 40 very large gas carriers (VLGCs), of which arrangements have been made for the supply of 20 VLGCs, said a source

The government has arranged around one million tonnes (mt) of liquefied petroleum gas (LPG) cargoes, mostly from the US, to meet demand for the key cooking fuel used by more than 330 million consumers.

The proactive measures have accompanied top-level parleys on the emerging situation between Prime Minister Narendra Modi and senior Cabinet Ministers, including Finance Minister Nirmala Sitharaman, Petroleum Minister Hardeep Singh Puri, Commerce Minister Piyush Goyal and Foreign Minister S Jaishankar. The Prime Minister reportedly asked the ministers to coordinate and ensure that consumers do not suffer from the impact of the West Asia conflict on the supply and price of petroleum products, especially LPG, sources said

Import Dependence

India consumed over 33 mt of LPG in FY25, with more than half of the demand met through imports. West Asia accounted for nearly 90 per cent of India’s total LPG imports, which stood at 20.67 mt. Besides, it produced 12.79 mt during the year. Regular supplies of LPG are important for India as the country does not have strategic reserves for the key cooking fuel.

“The LPG situation is getting more comfortable as production is being ramped up. Besides, we have been out in the market sourcing as much as we can,” said a top government source.

India has also been seeking to boost imports from the US and Canada. Another source said that the LPG deficit was around 40 very large gas carriers (VLGCs), of which arrangements have been made for roughly 20 VLGCs. The cargoes are expected to arrive at Indian ports from the end of this month.

A single VLGC can carry up to 50,000 tonnes of LPG. A back-of-the-envelope calculation shows that the LPG deficit was around 2 mt, of which cargoes for roughly 1 mt have been arranged.

Anticipating disruption in domestic LPG supply, the government has been prioritising LPG production. For instance, India invoked emergency powers last week, directing refiners to maximise production of the critical cooking fuel.

Based on data from the Petroleum Planning and Analysis Cell (PPAC), India’s average per day production of LPG stood at around 34,613 tonnes in October 2025, which fell to 34,533 tonnes in November. However, the output rose to 35,968 tonnes in December 2025 and further to 37,355 tonnes in January this year. February 2026 numbers are yet to be published.

For the entire 2025 calendar year, India per day average LPG production stood at around 38,099 tonnes.

India also invoked the Essential Commodities Act late on Monday night to regulate natural gas supply. The order prioritises the supply of natural gas to the Domestic Piped Natural Gas supply (D-PNG), Compressed Natural Gas (CNG) for transport, LPG production, as well as pipeline compressor fuel and other essential pipeline operational requirements.

Published on March 10, 2026