India shifts LPG imports to US amid Strait of Hormuz risks
Worth reading — 1 past UPSC question on this theme (Mains GS-3 2018).
2-minute summary
India has undergone a significant strategic shift in its Liquefied Petroleum Gas (LPG) import basket, now sourcing nearly 67% (two-thirds) of its supply from the United States. This marks a major transition from an earlier procurement target of around 10%. Between February and June 2026, India's LPG imports from traditional West Asian suppliers fell by almost 85%. This reorientation highlights India's proactive strategy to de-risk its energy supply chain away from vulnerable maritime bottlenecks, specifically the Strait of Hormuz, amidst escalating geopolitical conflicts in West Asia. By diversifying its import origin across regions, India aims to strengthen national energy security, protect domestic consumers from supply disruptions, and ensure consistent availability for household consumption schemes like the Pradhan Mantri Ujjwala Yojana.
Why it's in the news
Union Minister of Petroleum and Natural Gas Hardeep Singh Puri announced that India now sources 67% of its LPG imports from the US. This shift occurred as LPG imports from West Asia dropped nearly 85% between February and June 2026 due to heightened geopolitical friction around the Strait of Hormuz.
Background and context
Historically, India relied heavily on West Asian nations like Saudi Arabia, Qatar, the UAE, and Kuwait for its LPG supply due to proximity and long-term contracts. However, most West Asian shipments pass through the narrow Strait of Hormuz—a crucial maritime choke point vulnerable to regional conflicts and blockades. Between February and June 2026, geopolitical risks in West Asia led Indian state-run oil companies to drastically cut reliance on West Asian routes, resulting in an 85% decline in LPG imports from the region. To protect domestic consumers and prevent cooking gas shortages, India pivoted to the US market, taking advantage of the booming US shale and Natural Gas Liquids (NGL) export capabilities.
Constitutional provisions
- Seventh Schedule (List I, Entry 53) — Grants the Union Government exclusive legislative authority over petroleum, petroleum products, and foreign trade in energy resources.
Committees and reports
- Kirit Parikh Committee — Recommended reforms in domestic natural gas pricing and strategic measures to enhance energy self-reliance and import diversification.
Government schemes
- Pradhan Mantri Ujjwala Yojana (PMUY) — Expanded domestic LPG coverage to millions of low-income households, making resilient and uninterrupted LPG import channels critical for national social welfare.
International organisations
- International Energy Agency (IEA) — Monitors global energy security, tracks petroleum flows, and assists member/associate countries in managing supply chain disruptions.
Previous UPSC questions on this theme
- Mains GS-3 2018 — "Access to affordable, reliable, sustainable and modern energy is the sine qua non to achieve Sustainable Development Goals (SDGs)." Comment on the progress made in India in this regard.
Mains practice: Examine the strategic necessity of energy import diversification for India in light of maritime choke point vulnerabilities in West Asia. How does shifting LPG procurement towards the United States enhance India's energy security?
India is the world's third-largest energy consumer, with household cooking gas (LPG) demand expanding rapidly under national welfare schemes like the Pradhan Mantri Ujjwala Yojana. However, heavy concentration of supply from a single geography poses severe vulnerabilities.
• **Vulnerabilities of Maritime Choke Points:** Over 80% of India's historic LPG imports transited through the Strait of Hormuz. Conflict or military blockade in this narrow corridor leads to supply shocks, elevated shipping insurance, and severe price volatility.
• **Strategic Pivot to the US:** Sourcing nearly 67% of LPG imports from the US marks a major shift away from West Asia, where imports fell by 85% between Feb-June 2026. This leverages US shale gas abundance while bypassing vulnerable Middle Eastern maritime choke points.
• **Economic and Diplomatic Gains:** Diversification strengthens India's strategic autonomy, expands bilateral trade ties with the US, and increases India's leverage during contract negotiations with traditional suppliers.
• **Challenges:** Longer shipping distances from the US Gulf Coast increase freight costs and voyage durations compared to West Asia, exposing imports to transatlantic freight rate fluctuations.
In conclusion, geographic diversification of energy imports is essential for safeguarding India's economic stability. Pairing import diversification with expanded Strategic Petroleum Reserves (SPR) will solidify long-term energy resilience.
Prelims practice questions
Q1. Which maritime corridor connects the Persian Gulf to the Gulf of Oman and serves as a major transit bottleneck for global oil and gas shipments?
- Bab-el-Mandeb
- Suez Canal
- Strait of Malacca
- Strait of Hormuz
Answer: D. The Strait of Hormuz lies between the Persian Gulf and the Gulf of Oman, serving as one of the world's most critical energy maritime choke points.
Q2. Which country has recently emerged as the largest exporter of LPG to India, meeting nearly two-thirds of India's import requirements?
- Qatar
- Saudi Arabia
- United States
- United Arab Emirates
Answer: C. According to official data from the Ministry of Petroleum and Natural Gas, the US now accounts for approximately 67% (two-thirds) of India's LPG imports.
Q3. What are the primary hydrocarbon components of Liquefied Petroleum Gas (LPG)?
- Propane and Butane
- Methane and Ethane
- Ethylene and Acetylene
- Pentane and Hexane
Answer: A. LPG consists primarily of flammable hydrocarbon gases, mainly propane (C3H8) and butane (C4H10), compressed into a liquid state.
Revision flashcards
- What share of India's LPG imports is currently sourced from the United States (as of August 2026)? Approximately 67% (two-thirds), up sharply from an earlier target of ~10%.
- Which maritime choke point's geopolitical instability drove India's shift to US LPG? The Strait of Hormuz, located between Iran and Oman/UAE.
- By how much did India's LPG imports from West Asia fall between February and June 2026? Imports from West Asia declined by almost 85%.
- Which flagship government scheme drives massive domestic LPG consumption in India? Pradhan Mantri Ujjwala Yojana (PMUY), implemented by the Ministry of Petroleum and Natural Gas.
- What are the primary chemical constituents of Liquefied Petroleum Gas (LPG)? Propane (C3H8) and Butane (C4H10).