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OMCs begin importing LPG from US
Mar 17 2026 5:52PM
India has begun sourcing cooking gas from the United States as part of efforts to diversify supplies amid the ongoing West Asia crisis. The country has also secured 20 very large gas carriers (VLGCs) carrying around 1 million tonnes of cargo, largely sourced from the US.

“Most of the LPG is coming from the Gulf. Our oil marketing companies have started taking LPG from the US. Government is putting all efforts to diversify sources of LPG too,” said Sujata Sharma, Joint Secretary in the Ministry of Petroleum and Natural Gas, at a government briefing. She added, “We are getting more crude today due to increased diversification.”

Government officials have earlier told Moneycontrol that India is securing liquefied petroleum gas (LPG) supplies from the international portfolios of global companies, including UAE’s Adnoc (Abu Dhabi National Oil Company), Sonatrach, Algeria’s state-run oil and gas company, and others amid the war between US, Israel and Iran.

They also confirmed that India is scouting for more LPG partners and countries like Algeria, Australia, Canada, Norway have approached to sell LPG to India.

"We are getting more cargoes of LPG. LPG and LNG from other countries have started to come. Earlier, there was a shortage of 40 VLGCs (very large gas carriers), almost half of it has started coming,"  a government source has earlier told Moneycontrol. This is in addition with the long-term deal signed by state-run refiners for securing 2.2 million tonnes per annum of LPG from the US for 2026.

The government said that fuel availability remains stable, with refineries running at full capacity and sufficient stocks of petrol and diesel. Officials said commercial LPG supplies, which had earlier been halted, have now been partially restored, with states resuming distribution. To ease pressure on domestic LPG demand, alternative fuels such as kerosene and coal have also been activated.

The petroleum ministry official noted that LPG production in the country has been ramped up by 38% since March 5. "We are increasing our output by diverting some of the molecules into LPG pool," she said, adding that domestic supplies of LPG has not been cut anywhere so far.

Authorities have also stepped up enforcement to prevent malpractice. More than 12,000 inspections have been carried out, leading to the seizure of around 15,000 LPG cylinders.

Sharma noted that panic-driven demand is easing, saying, “There is a downward trend in panic booking. On March 13, there were 89 lakh panic bookings. It has come down to 70 lakh today. LPG refill distribution rate remains the same as before the conflict.” She urged consumers to avoid hoarding and refrain from black-market purchases.

The Centre has also directed states and Union Territories to fast-track approvals for city gas distribution pipeline projects, as part of a broader push to strengthen energy infrastructure during the crisis.

Sharma noted that various states including Bihar, Delhi, Haryana, Manipur, Gujarat, Rajasthan, Karnataka, Uttar Pradesh, and Himachal Pradesh have issued orders to allocate non-domestic LPG as per Centre's guidelines.

Two Indian-flagged LPG tankers -- the Shivalik and Nanda Devi -- safely passed through the Strait of Hormuz on March 14 and have reached India carrying approximately 92,700 metric tons of LPG.

Meanwhile, India’s diplomatic and logistical response to the crisis continues. External Affairs Ministry spokesperson Randhir Jaiswal clarified that there have been no talks with Iran regarding reports of tanker exchanges for safe passage. “Any case, the three vessels you refer to are not Iran-owned, and there’s no Iranian crude on them,” he said.

Officials also highlighted ongoing evacuation and movement efforts. Aseem R Mahajan, Additional Secretary (Gulf), said 2,44,000 Indian citizens have returned since February 28, with dozens of flights continuing to operate from the Gulf region. Separately, 161 Indian seafarers were repatriated in the past 24 hours, while LPG carriers such as Nanda Devi have reached Indian ports and begun cargo discharge.