Indian Public Sector Undertaking companies Bharat Petroleum Corp. and Indian Oil Corp. were heard to have secured early June-loading U.S. FOB spot LPG cargoes, according to market sources.
Each company is understood to have taken one 44,000 metric tons of evenly split LPG cargoes for June 4-6 and June 9-10 loadings. Some market participants said one of the FOB deals was concluded at around +30 cts/gal. This typically refers to the U.S. FOB resale differential, i.e. the premium to lift Mont Belvieu-linked cargoes vs OPIS Mont Belvieu Non-TET prices.
OPIS Mont Belvieu Delivered India for a very large gas carrier or VLGC evenly split cargo was last assessed on Wednesday at $975.13/mt, taking into account U.S. FOB prices and freight costs. A similar-sized FOB Arab Gulf cargo was assessed at $900.60/mt for propane and $942.60/mt for butane, equating to $921.60/mt on an evenly split basis on the same day.
A company source said that Indian importers may buy more late-June loading cargoes later if prices are favorable.
Two Indian shipbroking sources noted that these importers also purchased more than 10 CFR U.S. LPG cargoes for June delivery, although price details could not be confirmed.
"India typically buys U.S. LPG cargoes on a CFR basis rather than FOB. But with disruptions in the Middle East, some Indian buyers who already have vessels on time charter originally meant for Middle East liftings are now unable to deploy them there, and are diverting those ships to load FOB U.S. cargoes instead," one of the shipbrokers said.
"The U.S. FOB cargoes are essentially Indian importers utilizing vessels they have already committed under time charter, rather than leaving them idle," another shipbroker added.
The OPIS-assessed Ras Tanura-India VLGC freight rate rose to an average of $82.69/mt in March, up from $69.98/mt in February, following the escalation of the Middle East conflict in late February. The freight rate closed at $115.67/mt on Wednesday.
India, Asia's largest LPG importer of Middle East LPG, has been facing a supply crunch since the start of the conflict. The latest data from the country's Petroleum Planning & Analysis Cell showed March consumption at 2.38 million mt, down 15.1% month on month and 12.8% year on year.
India has been increasingly turning to U.S. supply as an alternative, with imports rising sharply since late February. Vortexa data showed the country imported around 180,800 mt of LPG in February and 329,400 mt in March, rising to 356,700 mt in April and 491,100 mt in May.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Cheryl Lee, clee@opisnet.com ; Editing by Mei-Hwen Wong, mwong@opisnet.com
(END) Dow Jones Newswires
April 23, 2026 04:34 ET (08:34 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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