LPG imports into India rose nearly 25% month-on-month in May, driven by a sharp increase in cargoes from the United States, as the country stepped up sourcing from alternative suppliers to offset disruptions in traditional Gulf supplies following the West Asia conflict.
According to Kpler data, India’s LPG imports increased to 1.22 million tonnes in May from 972,958 tonnes in April, a rise of 242,191 tonnes or 24.9%.
The increase was led by the United States, whose LPG shipments surged to 665,769 tonnes in May from 384,912 tonnes in April, an increase of 280,858 tonnes or 73%. The US accounted for nearly 55% of India’s total LPG imports in May, compared with around 40% in April.
At the same time, imports from Iran more than doubled to 142,078 tonnes from 67,357 tonnes a month earlier, while supplies from Oman rose to 36,624 tonnes from 28,230 tonnes.
The rise in imports came despite continued weakness in shipments from key Gulf suppliers.
Imports from the United Arab Emirates fell to 134,260 tonnes in May from 162,598 tonnes in April, a decline of 17.4%. Supplies from Qatar plunged 77.7% to 19,330 tonnes, while imports from Saudi Arabia declined 75.5% to 45,000 tonnes. Kuwait, a major supplier earlier this year, shipped no LPG cargoes to India during May.
The latest shift highlights how India’s LPG sourcing pattern has changed since the outbreak of the conflict in West Asia.
Between January and May, total LPG imports declined from 2.26 million tonnes to 1.22 million tonnes, a reduction of 1.05 million tonnes or 46.3%.
During the same period, imports from the United States increased from 268,845 tonnes to 665,769 tonnes, representing growth of 147.6%. In contrast, supplies from the UAE declined 83.8%, Qatar 95.5%, and Saudi Arabia 86.2%, while imports from Kuwait fell from 328,743 tonnes in January to zero in May.
The import realignment comes as India manages LPG supplies amid disruptions across the Gulf region, which traditionally accounts for a significant share of the country’s LPG imports.
The government has said domestic LPG production is running at a record 52,000 tonnes per day, while state-run oil marketing companies have been directed to build inventories equivalent to at least 30 days of demand.
At the same time, domestic LPG consumption has weakened sharply. According to PPAC data, LPG demand fell 19.2% year-on-year to 2.12 million tonnes in May, the steepest decline among major petroleum products.
Officials have attributed the decline partly to demand-management measures and supply optimisation efforts introduced during the disruption period.
Despite lower consumption, state-run fuel retailers continue to face financial pressure. The petroleum ministry recently said oil marketing companies are incurring an under-recovery of around ₹650 per domestic LPG cylinder, even as household LPG prices remain unchanged.
