Tariffs on China may help India secure cheap LPG from US: Report

China imported almost half of its LPG imports from the US in 2024

India’s efforts to import liquefied petroleum gas (LPG) from the US at rates cheaper than the supplies from West Asia has received a boost from an unlikely source.

A report by Business Standard said the import tariffs imposed by the US on China has come to India’s rescue in negotiating a cheaper deal.

State-run oil companies are reviewing options for the import of LPG from the US in July under term contract agreement, the newspaper said.

Discussions between all the stakeholders are also ongoing to secure cheap US LPG immediately in return for contracted Middle East supplies, BS said.

India’s LPG market is worth $12 billion, which is equal to a third of the total trade surplus with the US in 2024, the paper said, adding that the domestic industry is dominated by UAE, Qatar, Kuwait and Saudi Arabia.

Moneycontrol could not independently verify the report.

US President Donald Trump’s steep 145 percent tariff on Chinese goods last month made US LPG expensive for Beijing-based importers, leading to its availability for Indian companies, the report said.

China imported almost half of its LPG imports from the US in 2024, BS said. LPG imports from the US can increase India’s energy security for a fuel that is widely used in the kitchens for cooking, BS said, adding that good discounts could help it dominate the country’s LPG market.