US gas replaces Gulf supply as India’s primary LPG source during Hormuz blockade

The blockading of the Strait of Hormuz has triggered a massive, structural reshuffling of India’s liquefied petroleum gas (LPG) imports. Over the March-May 2026 quarter, traditional Middle Eastern giants lost staggering market share in India to the benefit of the United States. Historically, India relied on the Persian Gulf (Qatar, Saudi Arabia, UAE and Kuwait) for over 90% of its imported cooking gas. However, shipping data for the March-May period reveals that the Middle East’s share of India’s LPG import basket plummeted to a historic low of 16%. Filling this massive logistical void, the United States emerged as India’s primary supplier. Backed by a strategic term contract activated for 2026, the US share in India’s LPG imports surged to 55%. This rapid pivot to long-haul American shipments, alongside a government-mandated 25% increase in domestic refinery output, helped insulate Indian households from severe domestic shortages after regional conflict effectively halted standard Gulf transit routes, according to a report.

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