India’s imports ‌of liquefied petroleum gas (LPG) from the U.S. are set to top 1 ​million metric tons in June, a record high, industry sources said, as New ⁠Delhi turned to costlier suppliers to offset disruption from West Asia.

Before the U.S.-Israeli war on Iran and the closure of the Strait of Hormuz, India depended on West Asian producers for 90% ‌of its LPG imports, which totalled about 2 million tons per month.

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Imports of LPG, widely used as cooking fuel in Indian households, declined to as ‌low as 696,000 tons in April because of the Strait of Hormuz blockade, government data ‌showed. ⁠The imports, however, recovered to 1.15 million tons in May, the data ⁠showed.

Before the disruption, New Delhi had planned to raise U.S. LPG purchases to about 10% of total imports as part of its effort to rebalance trade with Washington.

The closure of the waterway accelerated spot buying from ​the U.S., with Indian refiners purchasing unprecedented ‌volumes at hefty spot market premiums as the government’s priority was to maintain uninterrupted cooking gas supplies, said a trade source who is aware of the purchases.

The sources declined to be named publicly as they are not authorised to speak to the media.

India ‌also asked refiners to maximise LPG output, prioritised LPG sales to households and ​accelerated the rollout of piped gas connections. The efforts have already started to reduce India’s LPG consumption by 15% to 20%, one of the ⁠sources said.

India is on track to receive about 1.1 million to 1.2 million tons of U.S. LPG in June, while supplies from the United Arab Emirates have started to recover ‌to around 300,000 to 400,000 tons this month, two sources at Indian refiners said.

The UAE offered LPG cargoes loaded from Oman’s Sohar port on a free-on-board basis at a premium of about $100 per ton to Saudi CP prices, the sources said, adding that Abu Dhabi National Oil Co deployed four to five vessels that get LPG up to Sohar port.

Indian refiners will also be getting about 45,000 tons of LPG from Kuwait in June, ‌the sources said.

The partial opening of the strait will improve LPG supplies from West Asia in ​the coming months, which will help to reduce prices, the sources added.

India imported 648,300 tons of LPG from the U.S. and 134,700 tons from ⁠the UAE in May, according to Kpler data.

Imports from Iran, mainly by small players with ⁠negligible links to the U.S., stood at 145,000 tons, while shipments from other traditional suppliers, including Saudi Arabia, Oman and Qatar, remained limited, Kpler’s data show.

Kpler’s preliminary ‌June data indicate India is scheduled to import about 1.07 million tons of LPG from the U.S., around 223,800 from the UAE, 116,200 tons from Iran and ​108,600 tons from Kuwait, with some volumes expected from Oman, Saudi Arabia, Algeria, Qatar and Nigeria.

In the third full month of the West Asia conflict, India’s consumption of liquified petroleum gas (LPG) declined more than 19% in May this year in comparison to the same period last year, according to provisional government data.

Meanwhile, consumption of petrol increased 2.8% during the reported period while that of diesel rose less than 1%.

The provisional data from the Petroleum Planning and Analysis Cell (PPAC) also pointed to consumption of aviation turbine fuel (ATF) – also having dipped about 0.8% during the same period.

LPG consumption down

India consumed about 2.12 million metric tonnes (MMT) in May this year, which is about 19.2% less than 2.62 MMT it consumed in the same month last year, according to the provisional data.

Speaking to The Hindu, Prashant Vashisht, senior vice-president and Co-Group Head of Corporate Ratings at ICRA, explained the fall in consumption is to do with the interim booking period being increased from 21 to 25 days in urban areas and up to 45 days in rural areas.

Mr. Vashist also pointed to an additional factor being the government’s supply maintenance orders – allocating 70% of commercial LPG of the pre-crisis levels to ease pressure on LPG.

Further, according to Abhishek Nath, Sector Head for Energy and Power at Delhi-based think tank Center for Study of Science, Technology and Policy (CSTEP), the decline is primarily to do with supply disruptions.

“India’s LPG consumption has declined in May this year mainly due to supply disruptions. There has been no major structural shift in LPG usage, although the number of piped natural gas (PNG) connections has been increasing,” he stated.

Mr. Nath added the disruptions have also led to people trying out electric cooking as well.

Petrol consumption up, diesel marginally up

India consumed 3.89 MMT of petrol in May this year, higher than 3.78 MMT it did in the same month last year.

Meanwhile, consumption of diesel stood at 8.67 MMT in May compared to about 8.59 MMT in the comparable period last year.

Specifically reflecting on diesel, Mr. Vaishisht explained consumption of diesel has moved from a higher base to a slightly higher base.

While he attributed the increased demand for diesel to a harsher summer this year and increased demand alongside increased industrial demand, he stated that standalone increased demand from agriculture would not have a significant impact.

“Generally, [consumption of] diesel grows between 2-3% and petrol 5-6%,” he said, adding, “While agricultural demand does add to volumes, the diesel pool is vast – ranging from moving goods to industries – therefore, [despite increased agricultural demand increasing], it will not be that high.”

Iran said on Saturday (May 23, 2026) it was finalising a 14-point framework for a deal with the United States, signalling some convergence in positions while cautioning that major gaps remain.

“Our intention was first to draft a memorandum of understanding, a kind of framework agreement composed of 14 clauses,” Foreign Ministry spokesman Esmaeil Baqaei said on state television.

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He pointed to what he described as “a trend towards rapprochement” with Washington, but added that “it does not necessarily mean that we and the United States will reach an agreement on the important issues”.

Mr. Baqaei said he hoped the details of a final agreement could be worked out “within a reasonable timeframe between 30 to 60 days” after the framework is finalised.

The remarks came following a visit to Iran by Pakistani army chief Asim Munir, who has been acting as a mediator between Tehran and Washington in efforts aimed at ending the war.

The conflict broke out on February 28 with Israeli-U.S. strikes that killed senior Iranian leaders, including Supreme Leader Ali Khamenei. Iran responded with missile and drone attacks across the region.

Since a fragile ceasefire took effect on April 8, the two sides have held a single round of talks that failed to culminate in a deal and have since exchanged proposals aimed at ending the conflict.

Mr. Baqaei said the primary focus of the framework under discussion was “ending the war on all fronts, including Lebanon”, as well as ending what Iran describes as a US naval blockade imposed on Iranian ports since April 13.

He added that arrangements concerning the strategic Strait of Hormuz were part of the draft framework, without elaborating.

Traffic through Hormuz, a vital global shipping route, has come under Iranian control since the outbreak of the war.

Iran, which has only allowed a trickle of ships to pass through the strait, has insisted that vessels obtain permission from its armed forces before transiting the waterway.

“The Strait of Hormuz has nothing to do with the United States. A mechanism for the strait should be defined between Iran and Oman as coastal states,” Mr. Baqaei said.

He said the framework did not include details on Iran’s nuclear programme — a key sticking point for Washington — and that the issue would be “subject to separate discussions” at a later stage.

Mr. Baqaei added that Iran’s longstanding demand for sanctions relief was included in the framework text, though the issue had likewise not yet been addressed in detail because nuclear matters were not currently under detailed discussion.

“It is also one of the points that we will need to examine in detail in the near future,” he said.

The ongoing West Asia conflict has highlighted India’s structural vulnerability to energy shocks, reinforcing the need to reduce dependence on imported crude and accelerate efforts to strengthen energy security, according to an external member of the RBI’s rate-setting panel.

Nagesh Kumar, who is the director of the Institute for Studies in Industrial Development and also a part of the Monetary Policy Committee, said the Indian approach needs to focus both on stepping up oil exploration domestically and hastening the transition to alternative sources.

“The high dependence on imported crude makes the Indian economy highly vulnerable to volatility in the hydrocarbons market. While India’s macroeconomic fundamentals remain resilient, and the Indian economy will continue to remain the fastest growing major economy with a growth rate of nearly 7% in 2026-27, it is time to prioritise energy security and resilience for sustaining the accelerating economic growth trajectory,” Mr. Kumar said in an interview with PTI.

The Congress on Friday (May 1, 2026) slammed the Narendra Modi Government over the latest price hike for commercial LPG cylinders, with Leader of the Opposition in the Lok Sabha Rahul Gandhi calling it the “bill for elections”.

Attacking the steep increase in commercial LPG prices, Mr. Gandhi said the hike — the largest ever in a single day — was proof that the burden of inflation would intensify after elections.

Hours after Iranian Foreign Minister Abbas Araghchi said that the Strait of Hormuz is “completely open”, Indian ships stranded in the Persian Gulf started sailing out of the Strait.

The Hindu has been tracking Indian-flagged vessels and ships bound for India in the Persian Gulf for the past month. Most of these ships are critical to India’s energy needs and are carrying crude oil.

India has ramped up supply of smaller 5-kg LPG cylinders and accelerated the rollout of piped natural gas (PNG) connections as it manages fuel availability amid disruptions triggered by the West Asia conflict.

More than 13 lakh 5-kg free trade LPG cylinders have been sold since March 23, with daily sales rising above 100,000 units, as authorities expand access for migrant workers and low-income consumers, according to an official statement.

Maharashtra Chief Minister Devendra Fadnavis on Saturday said there is no shortage of liquefied petroleum gas (LPG) cylinders in the state, accusing Congress of spreading panic that has led to long queues at LPG distribution centres.

“The long queues are not because of the lack of shortage of LPG but the panic Congress has created, confusing people, forcing them to stand in line. The central government, secretaries have clarified that there is no shortage by Congress conspiring to mislead the country,” said Mr. Fadnavis, who also holds the Home Minister portfolio. 

He slammed Congress for instigating people and insulting the country and Prime Minister Narendra Modi while speaking to the media in Maharashtra’s Chandrapur district.

Mr. Fadnavis’ statement comes at a time when people are waiting in line for LPG cylinders, facing technical issues in booking the cylinders, facing delays in cylinder deliveries, and a price hike. The hospitality sector has been hit as the Centre restricted the commercial supply, prioritising the domestic supply.

Congress in Maharashtra has staged a protest against the price hike as oil marketing companies hiked the price of a 14.2-kg domestic LPG cylinder by Rs 60 and commercial cylinder by Rs 115 on March 7, and the government’s improper management of the smooth supply.

Taking a dig at Mr. Modi, Congress MP Varsha Gaikwad questioned where are those who thumped 56-inch chests, when citizens are forced to stand in queue in scorching heat for an LPG cylinder on the X.

Earlier, Shiv Sena (UBT) MP Sanjay Raut also criticised the BJP government for failing to address the issue, saying they are busy in the election campaign and have remained silent when at least 40 hotels in the industry have shut down due to the shortage.

“PM Modi has always answered the opposition with action. Top leaders in the US have appreciated him for his ability to bring unanimity among the countries, but leaders in our country are humiliating him, which should stop.