India's avoided LPG shortages during West Asia tensions by spreading its supply sources . Since April 2026,U.S. became India's top supplier,now covering nearly third of imports—up from just 8% in February.
This change backed by a 2.2 million tonne yearly deal with U.S. inked in late 2025, covering about 10% of India's annual LPG needs. Iran's back too, supplying around 6% of imports in April. Argentina,Chile,France,and Netherlands also part of India's broader import mix.
Geopolitical shifts have pushed up global LPG prices. Saudi Aramco Contract Price,India's import benchmark,jumped 46% from February to June due to supply issues and higher freight costs . Yet,domestic household LPG prices in India barely budged. In Delhi,a 14.2-kg cylinder cost rose about 10%,while a 19-kg commercial cylinder shot up over 79%.
Household price hikes have been limited,leading to big losses for oil companies as procurement costs outpace retail prices. This situation shows the tricky balance of global supply dynamics and local pricing,keeping India's household LPG supply mostly steady despite market swings.
India's ongoing adjustments in import strategy,leaning on more suppliers,have helped dodge risks from geopolitical strife. But how it balances domestic demand with a shifting global market remains to be seen…
