India’s LPG import dependence at 55–60% despite output growth, Crisil says US deal to diversify supply

India’s liquefied petroleum gas (LPG) market remains heavily import-reliant, with overseas supplies meeting 55-60 per cent of national demand over the past decade despite incremental growth in domestic production, Crisil Intelligence said.

A new long-term India-US LPG agreement, covering 2.2 million tonnes per annum, marks a significant diversification move, reducing exposure to traditional Middle Eastern suppliers, it said. However, landed costs, particularly freight, will be a key determinant of oil marketing companies’ near-term economics.