India Resumes Iranian LPG Imports After Years as Sanctions Ease

India has reportedly resumed imports of liquefied petroleum gas (LPG) from Iran for the first time in several years, following a temporary easing of U.S. sanctions on Tehran’s oil and fuel exports. According to trade data and industry sources, the move comes as India grapples with significant disruptions in energy supplies linked to ongoing tensions in West Asia.

The LPG cargo, carried by the tanker Aurora, is expected to arrive shortly at the western port of Mangalore. The shipment was initially destined for China but was redirected to India amid shifting market dynamics and supply requirements.

India had halted energy imports from Iran in 2019 due to Western sanctions. However, the recent geopolitical developments and supply constraints—particularly disruptions in the Strait of Hormuz—have prompted New Delhi to explore alternative sourcing options to stabilise domestic availability.

The cargo is expected to be distributed among three major state-run fuel retailers: Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. Sources indicate that the purchase was facilitated through a trader, with payments likely to be settled in Indian rupees. India is also reportedly considering additional LPG imports from Iran in the near future.

Despite these developments, some officials have expressed caution. Rajesh Kumar Sinha, Special Secretary in the Ministry of Shipping, stated that he was not aware of any confirmed Iranian cargoes being loaded for India at this time.

India, the world’s second-largest importer of LPG, is currently facing one of its most challenging gas supply situations in decades. To manage the crisis, the government has prioritised household consumption and reduced supplies to industrial users.

Last year, India consumed over 33 million metric tonnes of LPG, with imports accounting for approximately 60% of total demand. A significant portion—nearly 90%—of these imports originated from Middle Eastern countries, making the region critical to India’s energy security.

Efforts are also underway to manage stranded shipments in the Persian Gulf. Several LPG carriers, including Shivalik, Nanda Devi, Pine Gas, and Jag Vasant, have already been moved from the Strait of Hormuz. Additionally, India is utilising empty vessels in the region to load available LPG supplies and maintain continuity in imports.

As global uncertainties persist, India appears to be diversifying its sourcing strategy and adapting quickly to evolving energy challenges to ensure stable domestic supply.