India Shifts towards US for LPG and LNG Supplies Amid Regional Disruption
The Indian government has approved an incentive scheme for city gas distributors to increase domestic PNG connections from September 1, 2026. This move aims to cut subsidy expenditure by shifting households from LPG to piped gas. Currently, India imports a significant portion of its LPG and LNG supplies from the United States, with August imports totaling 0.62 million tonnes of LPG, accounting for more than 73% of the country's LPG imports.
According to maritime intelligence firm Kpler, UAE LPG imports fell to about 1,40,000 tonnes in August, while Qatar supplied around 60,000 tonnes. Saudi Arabia supplied no LPG to India in July or August. The shift has also been visible in LNG, although India's sourcing pattern has been more diversified.
The price of CNG in Delhi was increased by ₹6 per kg, taking the cumulative rise this year to nearly ₹10 per kg. Prices have also been increased in adjoining cities, with CNG now costing ₹95.59 per kg in Noida and ₹92.01 per kg in Gurugram.