LPG disaster: India’s imports of LPG from Argentina have greater than doubled within the first few months of 2026 as the continuing battle within the Center East continues to disrupt provides of liquified petroleum fuel for India. India depends on international provide for an enormous portion of its LPG wants and estimates recommend that 60% of imports come via the Strait of Hormuz which has in impact been shut for protected passage for the reason that begin of the US-Iran warfare. India’s diplomatic engagement with Iran has resulted in some LPG tankers transiting efficiently via the Strait of Hormuz, however common provide stays impacted, which in flip has induced a rationalisation of LPG provide domestically, particularly for business customers.
Argentina Steps Up LPG Provide To India
Argentina has elevated its provide of LPG to India as shortages emerge following disruptions brought on by the West Asia battle, in response to folks conscious of the event.Through the first three months of 2026, Argentina exported 50,000 tonnes of LPG to India, greater than twice the 22,000 tonnes shipped in 2025. Of this, round 39,000 tonnes had already been despatched from the Port of Bahia Blanca earlier than the battle started, whereas an extra cargo of 11,000 tonnes was dispatched on March 5, in response to an ET report.Additionally Learn | Trump sanctions waiver for Iran crude oil: What does it imply for India amid Strait of Hormuz provide disruptions?Knowledge from the Argentine authorities confirmed that LPG output, largely derived from pure fuel, stood at 259,000 tonnes in January 2026. On an annual foundation, manufacturing elevated to 2.63 million tonnes in 2025, up from 2.6 million tonnes in 2024.Argentina had not provided LPG to India previous to 2024. Nonetheless, the nation is now anticipated to broaden its presence in India’s LPG market, in response to sources acquainted with the matter.Argentina is about to operationalise a brand new pure fuel liquids fractionation facility at its Bahia Blanca processing advanced in 2026, a transfer anticipated to extend output capability, with the extra volumes primarily focused at export markets.The nation can also be strengthening its position as an necessary financial companion for India in South America. Bilateral commerce between the 2 nations grew by 36.77 per cent to $6.34 billion in the course of the January to November 2025 interval. India at the moment ranks as Argentina’s fifth-largest buying and selling companion in addition to a key vacation spot for its exports.Argentina stays a major provider of edible oils to India, particularly soybean oil. Different main imports from the nation embrace sunflower oil, completed leather-based, cereals, residual chemical compounds and pulses. As well as, cooperation is increasing into hydrocarbons and important minerals.On this context, ONGC Videsh Ltd signed agreements with Argentina’s state-run vitality agency YPF in February 2023 to reinforce collaboration within the oil and fuel sector. Additional, marking its first abroad lithium asset acquisition, state-owned Khanij Bidesh India Ltd entered into an settlement on January 15, 2024, with Catamarca Minera y Energetica Sociedad del Estado to lease 5 lithium blocks for exploration and future improvement.
US Additionally Emerges As Massive Various to Gulf LPG
India has additionally stepped up buy of LPG from the US. It’s more and more counting on the USA to ease its ongoing LPG provide crunch because the battle within the Center East continues.In response to an S&P World Vitality report, India is working to diversify its LPG import sources, enhance refinery manufacturing, and step up diplomatic efforts to make sure uninterrupted availability of cooking gas for households in addition to important providers corresponding to hospitals and academic establishments in the course of the disaster.Additionally Learn | Securing LPG, LNG, crude oil: India plans evacuation for ships close to Strait of Hormuz – right here’s what’s being thought-aboutAnmol Bhushan, affiliate director for LPG at S&P World Vitality CERA, mentioned, “India is more and more turning to the US for LPG as geopolitical tensions reshape international commerce flows.”Knowledge from CAS signifies that imports of US-origin LPG into India have been rising steadily, with volumes now surpassing these sourced from conventional suppliers within the Gulf area.Indian oil advertising firms have additionally secured a long-term settlement to obtain 2.2 million metric tonnes of LPG from the US in 2026, which is equal to roughly 4 very massive fuel service shipments every month. Within the first two months of 2026 alone, India imported near 480,000 metric tonnes of LPG from the US, amounting to round 11 VLGC cargoes.
