India has resumed purchases of Iranian liquefied petroleum gas for the first time in years, following a temporary easing of U.S. sanctions on Tehran’s oil and refined fuels, reported Reuters.

Industry sources and trade flow data indicate that the sanctioned tanker Aurora, carrying the cargo, is expected to dock at Mangalore on India’s west coast. The shipment had originally been destined for China before being redirected to India.

This marks a significant shift in India’s energy procurement strategy. Since 2019, India had avoided Iranian energy imports under Western pressure, relying instead on other West Asian suppliers.

The decision to buy Iranian LPG comes amid severe disruptions in energy shipments through the Strait of Hormuz, a consequence of the ongoing U.S.-Israeli conflict with Iran. India has already managed to move four stranded LPG tankers—Shivalik, Nanda Devi, Pine Gas, and Jag Vasant—out of the troubled waters.

The cargo will be divided among India’s three state-run fuel retailers: Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. Payment for the shipment will be made in rupees, underscoring India’s efforts to reduce reliance on dollar-denominated transactions.

Sources suggest that India is considering further purchases of Iranian LPG, though officials have publicly denied knowledge of such imports. Rajesh Kumar Sinha, special secretary in the shipping ministry, stated at a press conference that no Iranian cargoes had been reported.

India, the world’s second-largest LPG importer, is currently grappling with its worst gas crisis in decades. To protect household supplies of cooking gas, the government has cut allocations to industries. 

Last year, India consumed 33.15 million metric tonnes of LPG, with imports meeting about 60% of demand. Nearly 90% of those imports originated from West Asia, highlighting the region’s importance to India’s energy security.

The arrival of Iranian LPG could provide some relief to India’s strained supply chain. In addition to moving stranded cargoes, India has begun loading LPG onto its empty vessels stuck in the Persian Gulf, signalling a broader effort to stabilise its energy logistics.

While the purchase may raise questions about India’s balancing act between strategic partnerships and energy needs, it reflects the urgency of securing fuel supplies during a period of heightened geopolitical tension.

Reuters