As the conflict in West Asia intensifies, throttling 60 per cent of India’s consumption, the government is scouting for cargoes of the key cooking fuel from Russia and Japan, while also depending on the United States for a major share of the lost cargoes.
Besides prioritising domestic liquefied petroleum gas (LPG) consumption over commercial use, sources said that India has also intensified diplomatic efforts to secure cargoes of the critical commodity—the main cooking fuel for more than 33 crore consumers.
Talks underway with Russia and Japan
“Cargoes are being sought from Russia, which are expected to start from next month. Talks are ongoing. Deliberations are also on to explore LPG from Japan, albeit the quantities will be low. Japan cargoes, if fixed, should reach India by mid-April. At this point the objective is to arrange as much as possible from wherever possible,” said one of the sources.
On Thursday, Randhir Jaiswal, spokesperson for the Ministry of External Affairs, said that India aims to secure LPG from all available sources, including Russia, to meet domestic fuel needs.
Global LPG market tight amid Middle East disruptions
The global LPG market is facing cargo scarcity, as disruptions in the West Asia have temporarily sidelined a region that represents roughly 30 per cent of worldwide LPG availability, squeezing the spot cargo pool and tightening overall supplies, S&P Global Energy analysts said.
“The silver lining is the ongoing diplomatic dialogue between Iran and India. This engagement helped enable Indian-flagged LPG carriers to transit the region, setting a positive precedent,” said Charles Kim, associate director for LPG at S&P Global Commodities at Sea.
Continued cooperation could support the passage of additional Indian-linked ships, keeping vital supply routes workable for India and offering some relief to the broader market, he added.
US-origin LPG to supplement domestic demand
Besides, India is already in talks with the US to procure more propane cargoes. The world’s second-largest importer procured nearly 480,000 tonnes of US-origin LPG in the first two months of 2026, corresponding to around 11 very large gas carriers (VLGCs).
Besides, it has already secured a term tender for 2.2 million tonnes of US-origin LPG for 2026—equivalent to about four VLGCs per month, S&P said.
Import data shows shift from Middle East
According to S&P Commodities At Sea (CAS), India’s weekly LPG imports fell to 265,000 tonnes in the week to March 19, from 322,000 tonnes on March 5. West Asia inflows to India declined to just 89,000 tonnes in the week to March 19, representing only 34 per cent of total imports, the lowest share since January.
Alternative regional supplies increased to 176,000 tonnes in the week to March 19, up from zero the previous week when the West Asia accounted for 100 per cent of imports, CAS data showed.
LPG prices rise amid supply disruptions
LPG prices have also risen amid persistent supply disruptions. Platts, part of S&P Global Energy, assessed FOB AG propane and butane cargoes $9 per tonne higher day over day at $648 per tonne and $642 per tonne, respectively, on March 18, following deals concluded on the Intercontinental Exchange during the end-of-day trading window.
The International Energy Agency (IEA) has said that the war in West Asia is creating the largest supply disruption in the history of the global oil market.