India’s government is actively exploring expanded energy imports from the United States, including liquefied petroleum gas and crude oil, contingent on the finalisation of a broader trade agreement.
Key Highlights:
- Talks underway to secure long-term US supply contracts for LPG and light sweet crude
- Trade deal negotiations will determine tariff structures and payment mechanisms
- US energy imports seen as diversification strategy amid global supply volatility
- Indian refiners continue to access adequate Russian oil volumes at discounted rates
- Russian crude remains a key component of India’s refining mix, especially for private players
- Government aims to balance geopolitical ties with energy security and pricing stability
- Strategic Petroleum Reserve expansion also under review to buffer future shocks
Market Impact:
- Enhances India’s leverage in global energy negotiations
- Supports domestic fuel demand ahead of festive and winter season
Sources: Reuters India Energy Desk, Ministry of Petroleum Briefing, Economic Times Trade Tracker, Business Standard Commodities 2025