India Turns to U.S. LPG Supplies as Middle East Disruptions Reshape Trade Flows
NEW DELHI — India is increasingly turning to the United States for liquefied petroleum gas (LPG) supplies as disruptions in the Middle East prompt a shift away from traditional Gulf sources, according to a new report.
Data from S&P Global shows that U.S. LPG shipments to India have risen in recent weeks, surpassing volumes from Gulf suppliers as the country works to diversify its energy imports.
India’s total weekly LPG imports declined to 265,000 metric tons in the week ended March 19, down from 322,000 metric tons in the week ended March 5.
“India is stepping up efforts to diversify its LPG supply base, including imports from the U.S., amid concerns about cooking fuel availability,” the report said.
Before the onset of conflict in the Middle East, the Gulf region accounted for roughly 60 percent of India’s LPG consumption. However, inflows from the region have dropped sharply.
Middle East shipments to India fell to 89,000 metric tons in the week ended March 19, representing just 34 percent of total imports — the lowest share since January.
At the same time, alternative supplies surged. “Alternative regional supplies increased to 176,000 metric tons in the week to March 19, up from zero the previous week when the Middle East accounted for 100 percent of imports,” the report said, citing CAS data.
The shifting trade flows come amid heightened public concern over LPG availability. Social media posts showing long queues and delayed deliveries have fueled anxiety in recent weeks.
However, analysts say India’s energy system has demonstrated resilience in managing the disruption. Authorities moved quickly to prioritize household consumption, directing oil marketing companies to ensure uninterrupted supply for domestic users while managing temporary constraints for commercial sectors such as restaurants and hotels.
The government also introduced regulatory measures aimed at preventing panic-driven market distortions.
On the operational front, India took steps to secure supply routes. Under Operation Sankalp, the Indian Navy facilitated the safe passage of merchant vessels through sensitive regions, while diplomatic efforts helped ensure LPG shipments continued despite disruptions.
Several cargoes have already reached Indian ports, helping stabilize supply and ease immediate concerns over availability. (Source: IANS)
