India has signed its first long-term deal to import liquefied petroleum gas (LPG) from the United States. The government said this is an important step to strengthen India’s energy security and reduce dependence on a few countries, especially at a time when global energy markets are becoming unstable.

On Monday, Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced that India’s state-run oil companies have finalised a one-year contract to import about 2.2 million tonnes of LPG from the US Gulf Coast for the year 2026. This amount makes up almost 10% of India’s total yearly LPG imports, showing a major shift in where India buys its gas from.

This is the first time India has signed a structured, long-term LPG deal with theUS. The contract price will follow rates at Mont Belvieu, which is America’s main LPG pricing hub. Officials from Indian Oil, Bharat Petroleum and Hindustan Petroleum had travelled to the US in recent months to negotiate the agreement with American suppliers.

Calling it a “historic first,” Minister Puri said the deal shows how India is working to ensure safe and affordable LPG for its people. He added that India has been trying to diversify its imports so that it does not rely too much on a few countries.

India is the world’s second-largest LPG consumer. The demand for LPG has been rising because more households are using it, thanks to schemes like Ujjwala Yojana, which gives subsidised LPG connections to low-income families. India currently buys more than half of its LPG from abroad, mainly from West Asia. Now, importing a significant share from the US will help India reduce risks linked to price changes and supply issues.

Minister Puri also pointed out that even though global LPG prices jumped by over 60% last year, the government made sure that Ujjwala users paid only ₹500–₹550 per cylinder. The actual price touched ₹1,100, but the government covered the extra cost and spent over ₹40,000 crore to protect poor households from the rising prices.

The new agreement with the US is expected to deepen energy ties between the two countries and could lead to more long-term deals in the future. For India, buying LPG from different regions makes the supply more stable and reduces the chance of sudden shortages or price shocks.

With LPG use growing steadily across urban and rural areas, the government says that diversifying supply sources will remain an important priority in the coming years.