India-US sign 1st deal since Trump Tariffs implementation:New Delhi will meet 10% of LPG requirements from imports; fall cylinder prices expected

India and the US have signed their first deal amid tariff disputes. Under this deal, India will purchase around 2.2 million tons (MTPA) of LPG from America. This is 10% of India’s annual requirement. This deal is only for one year, that is 2026. This deal has been made between India’s state oil companies – Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) with American energy suppliers – Chevron, Phillips 66, and Total Energies Trading. Deal could make gas cheaper in India Petroleum Minister says – Indian markets open for America Petroleum Minister Hardeep Singh Puri has called this deal historic. He said – the world’s largest and fastest growing LPG market has opened up for America. We have taken this step to diversify energy supply. Meanwhile, Commerce Minister Piyush Goyal said, “Energy is an area where everyone should work together. India is a big player in energy and we import from around the world including the US. Energy trade with the US will increase in the coming years. We are close friends and natural partners, so US’s role in energy security will increase.” The US President Donald Trump and PM Narendra Modi have also discussed making the US India’s leading oil-gas supplier. America has imposed 50% tariff on India Trump has imposed a total 50% tariff on India for buying oil from Russia. This includes 25% reciprocal and 25% penalty on Russian oil purchases. Additionally, India has a trade surplus with the US. Now trying to finalize trade deal by increasing energy purchases. This deal will support India’s LPG market Previously, most of India’s LPG came from West Asian countries like Saudi Arabia, UAE, Qatar and Kuwait. Now this deal will expand our oil procurement scope. After recent discussions with American producers, Indian PSU oil companies have finalized this. The volume is so large that it will support India’s rapidly growing LPG market, where about 60% of demand is met through imports.