Page 41 - Policy Economic Report - November 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Key Policy developments/Significant news in Energy sector

India Concluded First-Ever Major LPG Import Deal with US

In a historic development, Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, announced
that Indian PSU oil companies have successfully concluded a one-year structured contract to import
around 2.2 MTPA of LPG from the US Gulf Coast for the contract year 2026. This represents close to ten
percent of India’s annual LPG imports and marks the first such structured US LPG contract for the Indian
market. The Minister described the decision as a historic development, noting that one of the world’s
largest and fastest growing LPG markets has now opened up to the United States.

The Minister stated that India has been consistently working to secure affordable and reliable LPG supplies
by diversifying its sourcing options. As part of this effort, a team of officials from Indian Oil, Bharat
Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) had visited
the United States from 21 to 24 July 2025 and engaged in discussions with major US producers. These
discussions, based on Mount Belvieu as the benchmark for LPG purchases, have successfully concluded
with the finalisation of the contract.

Shri Puri highlighted that under the leadership of Prime Minister Narendra Modi, PSU oil companies have
ensured the provision of LPG at the lowest global prices to households across the country. Even as global
LPG prices surged by more than 60 percent last year, Ujjwala beneficiaries continued to receive cylinders
at a subsidised price of about ?500–550, despite the actual cost exceeding ?1100. The Government of
India absorbed the burden, incurring an expenditure of over ?40,000 crore in the previous year to shield
families—especially mothers and sisters—from the impact of rising international LPG prices.

The Minister emphasised that this new sourcing arrangement for 2026 is another step in strengthening
India’s energy security while ensuring affordable access to clean cooking fuel for millions of households.

Minister Hardeep Singh Puri Highlighted Indo-Japanese Energy Opportunities at Tokyo Industry Meet

Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, participated in a Roundtable with leading
Japanese industry representatives in Tokyo, focusing on opportunities for Indo-Japanese collaboration
across the entire energy value chain. The discussions centered on how India and Japan—two major
economies of the Indo-Pacific—can work together to build secure, sustainable, and future-ready energy
systems. Minister Puri highlighted that India’s massive scale, rising energy demand, and unprecedented
infrastructure expansion under the leadership of Prime Minister Narendra Modi, combined with Japan’s
technological excellence, create a natural partnership for the region’s long-term energy stability.

In the discussions, the Minister noted that during Prime Minister Modi’s visit to Japan in August this year,
both countries adopted the India-Japan Joint Vision for the Next Decade. Building on the significant
progress made towards the 2022–2026 target of JPY 5 trillion in public and private investment from Japan
to India, an ambitious new goal of JPY 10 trillion (~USD 68 billion) in private investment has been set for
the near future. This milestone underscores the growing strategic alignment between the two nations,

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