Importing LPG from US may be a costlier proposition for oil marketing companies

MUMBAI: Though the landmark long-term LPG procurement deal with the US is a positive move from a sourcing or supplier diversification point of view, the longer distance and thus the higher freight costs could make it marginally costlier for oil marketing companies in the near term.

The country heavily depends on imports for liquefied petroleum gas (LPG), with inward shipments meeting as much as 55-60% of demand, despite steady domestic production growth. Import dependence for LPG rose to 66% in fiscal 2025 from 51% in fiscal 2017, according to a Crisil report.