India seeks Russian, Japanese LPG cargoes amid US-Iran war
What's the story
As the conflict in West Asia escalates, impacting 60% of India's consumption, the Indian government is actively seeking liquefied petroleum gas (LPG) cargoes from Russia and Japan. The US is also being relied on for a significant portion of lost supplies. The move comes as part of India's strategy to prioritize domestic LPG consumption over commercial use amid global shortages caused by regional disruptions.
Diplomatic negotiations
Russia to start supplying LPG next month
India has stepped up diplomatic negotiations to secure LPG cargoes, the main cooking fuel for over 33 crore consumers. Cargoes are being sought from Russia, which are expected to start from next month, according to the ongoing talks. Discussions are also underway to explore LPG supplies from Japan, though in smaller quantities.
Market challenges
Iran-India diplomatic talks yield positive supply route developments
The global LPG market is witnessing a shortage of cargoes as West Asia, which accounts for nearly 30% of global LPG supply, has been temporarily sidelined. This has squeezed the spot cargo pool and tightened supplies. However, ongoing diplomatic talks between Iran and India have allowed Indian-flagged LPG carriers to transit through the region, a positive development for India's vital supply routes.
Propane procurement
US propane cargoes to supplement India's LPG needs
India is also in talks with the US for more propane cargoes. The country imported nearly 480,000 tons of US-origin LPG in January and February 2026, equivalent to some 11 very large gas carriers (VLGCs). It has also secured a term tender for 2.2 million tons of US-origin LPG for this year, about four VLGCs per month, according to S&P Commodities At Sea (CAS).
Import trends
Alternative regional supplies on the rise as West Asia falters
India's weekly LPG imports fell to 265,000 tons in the week ending March 19, down from 322,000 tons on March 5. West Asia's share in total imports dropped to just 34%, the lowest since January. Alternative regional supplies rose to 176,000 tons during the same period. Amid persistent supply disruptions, LPG prices have also risen with FOB AG propane and butane cargoes assessed $9 per ton higher day over day at $648/ton and $642/ton respectively on March 18.