US becomes India's top LPG supplier amid Hormuz crisis
What's the story
The United States has emerged as India's top supplier of liquefied petroleum gas (LPG) in April, according to data from analytics firm Kpler. The development comes as India looks to diversify its fuel sources amid the ongoing conflict in West Asia. In April, India's LPG imports fell to 968,000 tons from 1.13 million tons in March due to the continued blockade of the Strait of Hormuz impacting fuel supplies.
Shipment details
India diversifies LPG imports amid geopolitical tensions
In April, the US exported 384,000 tons of LPG to India, a slight decrease from March's 391,000 tons. This shift highlights India's growing reliance on American supplies amid geopolitical tensions. The country has also signed a long-term agreement with state-run refiners for 2.2 million tons of LPG for 2026.
Export statistics
Saudi Arabia remains 2nd-largest supplier of LPG to India
Saudi Arabia was the second-largest supplier of LPG to India in April, exporting 184,000 tons. This is a 41.5% increase from the previous month. On the other hand, exports from the United Arab Emirates (UAE) fell by 28% to reach 163,000 tons during this period.
Diversification strategy
India increases LPG purchases from Australia, Chile, China
Before the Iran conflict began on February 28, nearly 90% of India's LPG imports transited through the Strait of Hormuz. The situation has disrupted supply chains and pushed India to diversify its imports. To secure cargoes and reduce dependence on traditional suppliers, India has increased LPG purchases from Australia (22,000 tons), Chile, and China (3,000 tons).
Export changes
Surge in imports from Iran; drop in Qatar supplies
India's LPG imports from Iran surged nearly six-fold to 63,000 tons in April. However, the country saw a 59% drop in imports from Qatar, bringing the total down to 87,000 tons during this period. These changes further highlight India's efforts to diversify its LPG sources amid global geopolitical tensions.