Recent Delhi is diversifying its sources of liquefied petroleum gas (LPG) imports, increasingly turning to the United States, Norway, and Canada as supplies from the Middle East face disruptions. This shift comes amid heightened geopolitical tensions and concerns over energy security, prompting India to secure alternative supply routes for this essential household fuel. The move underscores India’s strategy to reduce reliance on any single region for critical energy needs, a policy gaining momentum as global supply chains become increasingly vulnerable.
India, one of the world’s largest LPG consumers, traditionally relied heavily on shipments from the Persian Gulf region. However, escalating conflicts in the Middle East, including the ongoing Iran-US tensions and disruptions to shipping lanes like the Strait of Hormuz, have prompted a reassessment of supply strategies. According to the US Treasury Department, a 30-day emergency waiver was issued on March 6, 2026, allowing Indian refiners to purchase Russian oil already at sea, a move intended to stabilize global energy markets amidst these disruptions. This waiver, as stated by US Treasury Secretary Scott Bessent on X (formerly Twitter), was a temporary measure “to enable oil to keep flowing into the global market.”
Diversifying LPG Sources
While the recent US waiver focused on crude oil, India has been proactively increasing its LPG imports from non-traditional sources. Data indicates a growing trend of procuring LPG from the US, Norway, and Canada, alongside continued imports from existing suppliers. This diversification is not a new development, but has accelerated in recent months due to the volatile geopolitical landscape. The United States Ambassador to India, Sergio Gor, recently hailed India as a “great partner” in maintaining stable oil prices globally, recognizing the country’s purchases of Russian oil as part of these efforts, according to the Economic Times.
The shift towards these new sources is also driven by competitive pricing and the availability of long-term supply contracts. US energy exports, boosted by President Trump’s energy agenda which has resulted in record oil and gas production, have become increasingly attractive to Indian buyers. Norway, a stable and reliable energy producer, offers a secure alternative, while Canada provides another geographically diverse option.
Geopolitical Context and Regional Stakes
The increased demand for alternative energy sources is directly linked to the escalating tensions between Iran and the United States. White House Press Secretary Karoline Leavitt stated that the US allowed India to accept Russian oil already at sea to secure energy supplies during the Iran conflict, as reported by Live Mint. The blockade of the Strait of Hormuz, a critical waterway for global oil shipments, and Israeli strikes on Beirut have further exacerbated concerns about supply disruptions, prompting the US to offer the temporary waiver to India. This situation highlights the interconnectedness of global energy markets and the potential for regional conflicts to have far-reaching consequences.
India’s energy security is paramount, given its rapidly growing economy and population. The country imports over 85% of its crude oil and a significant portion of its LPG needs. Maintaining stable and affordable energy supplies is crucial for sustaining economic growth and ensuring social stability. The recent moves to diversify LPG sources demonstrate India’s commitment to mitigating risks and safeguarding its energy interests.
Impact on Russia and Global Markets
While the US waiver allows India to purchase Russian oil already in transit, officials have emphasized that We see unlikely to provide significant financial benefits to Moscow. Secretary Bessent stated that the move would not bring major gains for Russia. However, the broader trend of India continuing to purchase Russian energy, even with Western sanctions in place, underscores the complexities of navigating geopolitical pressures while prioritizing national interests.
The increased demand for LPG from the US, Norway, and Canada is also likely to impact global energy markets, potentially leading to price fluctuations and shifts in trade flows. The long-term effects of these changes will depend on the duration of the Middle East conflict and the evolving geopolitical landscape.
What to Watch Next
Looking ahead, the next key development will be the expiration of the 30-day US waiver for Russian oil purchases on April 6, 2026. The decision on whether to extend the waiver will likely depend on the evolving situation in the Middle East and the overall stability of global energy supplies. India will continue to monitor the geopolitical situation closely and adjust its energy procurement strategies accordingly. Further expansion of long-term LPG supply contracts with the US, Norway, and Canada is also anticipated, solidifying India’s diversified energy portfolio.
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