India seals US LPG deal as tariffs strain ties
“India will source around a tenth of its LPG from the US under a new one-year deal.”
Key points
- India will source around a tenth of its LPG from the US under a new one-year deal.
- The announcement comes amid tariff-driven tensions and shifts in Russian oil buying.
- Officials pitch the contract as energy diversification amid economic headwinds.
NEW DELHI: India announced a one-year agreement for 2.2 million tonnes of US liquefied petroleum gas, which officials said would cover nearly 10% of the country's annual LPG imports and diversify supply.
The deal comes as relations with Washington remain under pressure after President Donald Trump raised tariffs on Indian goods to 50%, citing New Delhi's discounted purchases of Russian oil. Trump has also claimed Prime Minister Narendra Modi agreed to cut Russian crude imports as part of broader talks, a claim India has not confirmed.
Energy Minister Hardeep Singh Puri called it the first structured US-LPG contract for India. The move follows sanctions-related adjustments by Indian refiners, with HPCL-Mittal halting Russian purchases and Reliance saying it is assessing implications. Economists warn US tariffs could shave 60?80 bps from growth even as the economy recently posted its fastest quarterly expansion in five quarters.
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