India imports almost half of its LPG requirement. Therefore, stable and reliable sources with low price fluctuations are extremely important. According to the announcement made by Union Minister Hardeep Puri on Monday, this agreement with the US is based on the Mount Bellevue Benchmark, which is considered to be a system for setting a fair and stable price in the global LPG market.

Till now, India has mainly relied on Gulf countries for LPG imports, but this first of its kind agreement with America will further increase the energy partnership between the two countries. Experts believe that this agreement can also open the way for new opportunities in the fields of LNG, crude oil and clean energy in the coming years.

Under this agreement, 22 lakh tonnes of LPG will be imported from America in 2026. This agreement is for one year only. Next year, LPG imports from America will be 10% of India’s total imports. This import will start from the Gulf Coast of America and will reach directly to Indian ports. India’s three government oil marketing companies have signed this agreement after months of negotiations with American producers. This will not only reduce the supply risk, but will also reduce the impact of price fluctuations. If global markets become volatile in 2026, India will have a long-term, stable price settlement.

important for energy security

This initiative of India is also giving a symbolic sign that the country is moving towards a new model of energy security. There will be three main benefits of this rule. First India-United States to promote reform monuments, security of stable islands and promotion of public sector enterprises.