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The US has overtaken Gulf producers to become India’s largest LPG supplier as disruptions linked to the Iran conflict and Strait of Hormuz blockade reshape energy trade, while Russia remains the country’s biggest crude oil source
The conflict in West Asia is reshaping India’s energy import basket, with the United States overtaking traditional Gulf producers to become the country’s largest supplier of liquefied petroleum gas (LPG), while Russia continues to dominate crude oil shipments despite ongoing geopolitical tensions and sanctions uncertainty.
Data from energy intelligence firm Kpler, as reported by ThePrint, shows the US accounted for 55 per cent of India’s LPG imports in May 2026, a sharp jump from just 14 per cent in February, before the US-Israel military campaign against Iran triggered disruptions across Gulf energy supply chains and led to the closure of the Strait of Hormuz.
The shift marks a significant change for India, which has historically relied on the Gulf for the bulk of its LPG requirements. The combined share of the UAE, Saudi Arabia, Kuwait and Qatar in India’s LPG imports fell from 81 per cent in February to just 16 per cent in May.
US LPG exports to India surged 73 per cent month-on-month to about 666,000 metric tonnes in May, helping offset a sharp decline in cargo availability from the Gulf.
The disruption has prompted New Delhi to tighten domestic supply management. India recently barred consumers with piped natural gas connections from purchasing LPG cylinders and curtailed supplies to some industrial users as authorities prioritise household demand.
At the same time, higher domestic production has helped cushion the impact. Government data shows India’s LPG output has risen to 50,000-52,000 metric tonnes per day from about 35,000 tonnes before the conflict, reducing dependence on imports that typically meet around 60 per cent of national demand.
On the crude oil front, Russia has strengthened its position as India’s largest supplier. Imports of Russian crude rose 24 per cent month-on-month to 1.95 million barrels per day (mbpd) in May, accounting for a substantial share of India’s total crude imports of about 4.9 mbpd.
Kpler analysts said Russian barrels have provided Indian refiners with stable and competitively priced supplies at a time when flows from parts of the Gulf have become increasingly erratic.
India has also stepped up purchases from Venezuela and Oman as refiners diversify sourcing. Imports of Omani crude jumped 179 per cent in May, reflecting growing interest in suppliers whose export routes are less exposed to disruptions around Hormuz.
Frequently Asked Questions
Will India’s energy import strategy change permanently?
India is reshaping its economic strategy to build long-term resilience against geopolitical disruptions in energy supplies, moving from crisis management to deeper economic safeguards through self-sufficiency and diversification.
How will the Strait of Hormuz closure impact global trade?
The closure of the Strait of Hormuz is causing significant disruptions to global trade and energy markets.
Could US become a long-term LPG supplier for India?
The US has become India’s largest supplier of LPG, accounting for 55% of imports in May 2026. This shift is due to disruptions in West Asian energy supply chains caused by the Iran conflict. US LPG exports to India surged 73% month-on-month in May.
First Published:
June 03, 2026, 09:23 IST
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