India has imported its first cargo of Iranian liquefied petroleum gas (LPG) in years, following a temporary easing of US sanctions on Tehran’s energy exports, marking a significant shift in the country’s energy sourcing strategy. The move comes amid a deepening energy crisis triggered by geopolitical tensions in West Asia, particularly disruptions in supply routes through the Strait of Hormuz.

Key Highlights

• India buys first Iranian LPG cargo after years as US eases sanctions amid crisis.
• Move aims to ease supply crunch as geopolitical tensions disrupt global energy markets.

The LPG shipment, carried by a sanctioned tanker, is expected to arrive at the Mangalore port and will be distributed among state-run fuel retailers including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation.

India had halted energy imports from Iran in 2019 due to Western sanctions, making this purchase the first in nearly four years. The cargo, initially intended for China, was redirected to India and reportedly acquired through a trader, with payments likely to be settled in rupees.

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The development highlights India’s urgent need to secure fuel supplies as the country grapples with one of its tightest LPG supply situations in recent years. With demand rising and imports accounting for a significant share of consumption, policymakers are exploring alternative sourcing strategies to stabilise supply chains.

Industry sources suggest India may consider further purchases of Iranian LPG if supply disruptions persist, signaling a potential recalibration of its energy import mix in response to evolving geopolitical realities.