Industry insiders indicate that, due to disruptions in Middle Eastern supply, India has been compelled to source more expensive cargoes to cover the shortfall. The country's liquefied petroleum gas (LPG) imports from the United States in June are projected to exceed 1 million metric tonnes, reaching a historic high.
Prior to the conflict between the U.S., Israel, and Iran and the subsequent shipping disruptions in the Strait of Hormuz, India's total monthly LPG imports stood at approximately 2 million tonnes, with 90% sourced from Middle Eastern oil-producing nations.
Official data shows that LPG is a mainstream cooking fuel for Indian households. Affected by the blockade of the strait's shipping lanes, imports fell to a low of 696,000 tonnes in April before recovering to 1.15 million tonnes in May.
Before this supply crisis unfolded, India had originally planned to increase its procurement of U.S. LPG to around 10% of its total import volume. This move was intended to adjust its trade structure with the U.S. and help balance the bilateral trade deficit.
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