India is adjusting its liquefied petroleum gas (LPG) import strategy in response to the West Asia conflict, aiming to reduce dependence on regional suppliers. Multiple reports say India diversifies sourcing beyond traditional West Asian deliveries, drawing on suppliers including the United States and Iran, alongside other countries. Prior to the conflict, about 90% of India’s LPG imports came from West Asia, leaving supply vulnerable to regional disruptions.
The change comes as international prices increase sharply. One outlet cites a rise in the Saudi Aramco Contract Price, which is used as a benchmark for Indian LPG imports, noting a 46% increase between February and June. The higher costs are attributed to market pricing for potential supply constraints and higher freight expenses.
Despite the price shock, state-run oil marketing companies (OMCs) are described as absorbing the impact. Domestic LPG consumption declines, with reports pointing to tighter supplies and rising end-user costs. Overall, the sources describe continuity of supply through broader sourcing while highlighting continuing exposure to global price movements and geopolitical risks.
