The United States supplied more than 73% of India’s liquefied petroleum gas imports in August, as geopolitical disruptions constrain LPG supplies to the world’s most populous country, according to OPEC.
India imported about 0.62 million tonnes of LPG from the US in August, down from 0.89 million tonnes in July, the Organization of the Petroleum Exporting Countries said in its September Monthly Oil Market Report.
Despite the month-on-month decline in volumes, US cargoes accounted for more than 73% of India’s total LPG imports in August. OPEC said sourcing from the US forms part of a broader supply-side strategy aimed at easing bottlenecks caused by ongoing geopolitical tensions that are curtailing LPG supplies to India.
The shift comes as LPG availability remains under pressure. OPEC said India’s LPG demand declined by about 170,000 barrels a day year-on-year, following a 140,000 barrels-a-day decline in the previous month, with consumption subdued by supply constraints stemming from disruptions in the Middle East.
Industrial and commercial users also shifted to piped natural gas as an alternative after the government capped LPG use in those sectors.
The developments highlight the importance of alternative supply sources for India as disruptions in the Middle East affect LPG flows. OPEC’s report shows that the US is playing a major role in helping India address those supply constraints.
India’s broader oil demand outlook remains resilient. OPEC expects the country’s oil demand to increase by about 0.2 million barrels a day year-on-year in the fourth quarter of 2026.
For the full year, Indian oil demand is projected to grow by about 60,000 barrels a day to average 5.7 million barrels a day, supported by robust domestic demand, services activity and economic expansion.
India’s manufacturing activity remained in expansion territory in August, with its purchasing managers’ index at 52.9, while the services PMI increased to 54.5 from 53.1 in July, according to the report.
The US supply surge is also occurring against a backdrop of strong American petroleum-product exports. OPEC said US product exports reached a record 8 million barrels a day in August, with increased shipments of propane and propylene to Asia, alongside higher distillate fuel oil exports to Europe and Morocco.
