India has increased liquefied petroleum gas (LPG) imports from the United States, surpassing volumes sourced from traditional Gulf suppliers, as it moves to diversify supply lines amid ongoing disruptions linked to the Middle East conflict, according to a report by S&P Global.
The report indicates a shift in sourcing patterns as supply flows from the Gulf region weaken. Weekly LPG imports into India declined to 265,000 metric tonnes in the week ending March 19, down from 322,000 metric tonnes recorded in the week ending March 5. The fall reflects volatility in supply chains triggered by geopolitical tensions affecting shipping routes.
India has historically relied heavily on the Gulf for LPG, with the region accounting for nearly 60 per cent of total consumption before the conflict escalated. However, recent data shows a sharp decline in Middle Eastern inflows, which dropped to 89,000 metric tonnes during the week ending March 19. This accounts for just 34 per cent of total imports, marking the lowest share since January.
At the same time, alternative supply sources have expanded significantly. Imports from non-Gulf regions rose to 176,000 metric tonnes during the same period, compared to no such volumes in the previous week when the Gulf had accounted for the entire import basket. The data underscores India’s accelerated effort to secure diversified supply channels in response to disruptions.
The report highlights that the government has moved swiftly to stabilise domestic availability. Authorities have prioritised household consumption by directing oil marketing companies to ensure uninterrupted supply for domestic users, even as temporary adjustments are made in commercial sectors such as restaurants and hotels.
The government has also implemented regulatory measures aimed at preventing panic-driven behaviour in the market, particularly in response to concerns over potential shortages. Social media has seen an increase in posts showing long queues and delayed deliveries, contributing to public anxiety over cooking fuel availability.
Officials, however, maintain that India’s energy supply framework remains resilient and capable of absorbing external shocks. The system has been adapted over time to manage fluctuations in global supply conditions without significantly impacting domestic consumption patterns.
Maritime security measures have also played a role in sustaining supply chains. Under Operation Sankalp, the Indian Navy has ensured the safe transit of merchant vessels through sensitive regions, particularly around key shipping corridors affected by the conflict. Diplomatic efforts have further facilitated the movement of LPG cargo through disrupted routes.
Several shipments have successfully reached Indian ports in recent weeks, helping to ease immediate supply pressures. These developments have contributed to stabilising the availability of LPG across the country despite ongoing global uncertainties.
The current shift in import patterns reflects a broader strategic recalibration aimed at reducing dependence on any single region. By expanding sourcing options, India is seeking to strengthen energy security and mitigate risks arising from geopolitical disruptions.
As the conflict continues to impact global energy flows, the country’s diversified approach is expected to remain central to maintaining steady LPG supplies for both domestic and commercial users.
