Overview
- India is set to receive roughly 1.07–1.2 million tonnes of LPG from the United States in June, a monthly record reported by Kpler and Indian industry sources.
- The shift to U.S. cargoes accelerated after the U.S.–Iran war raised risks to shipments through the Strait of Hormuz, choking traditional Gulf export routes and cutting India’s Middle East volumes sharply.
- Benchmark LPG costs rose sharply during the disruption, with Saudi Aramco contract prices up about 46% from February to June, raising India’s import bill and freight premiums.
- New Delhi ordered demand-management steps and asked refiners to boost domestic LPG output while oil marketing companies rationed sales and extended booking intervals to protect household supplies.
- Analysts warn U.S. and other non‑Gulf sources cannot fully replace Middle Eastern LPG because of product specifications, shipping limits and volume constraints, even as UAE shipments via Sohar and a U.S.–Iran MoU have begun to ease immediate pressures.