India strikes US gas deal under Trump pressure

Published November 17, 2025
Workers use their mobile phones, as another looks on, waiting for customers, at a Hindustan Petroleum fuel station, in Bengaluru, India on October 30, 2025. — Reuters
Workers use their mobile phones, as another looks on, waiting for customers, at a Hindustan Petroleum fuel station, in Bengaluru, India on October 30, 2025. — Reuters

India said on Monday it had signed a “significant” deal that will see the United States supply nearly 10 per cent of the Asian giant’s liquefied petroleum gas (LPG) imports, as it seeks to diversify its energy sources.

Relations between Washington and New Delhi plummeted in August after President Donald Trump raised tariffs on India to 50pc, with US officials accusing the country of fuelling Russia’s war in Ukraine by buying its discounted oil.

Trump has claimed that Indian Prime Minister Narendra Modi has agreed to cut its Russian oil imports as part of a prospective trade deal — something New Delhi has not confirmed.

India and the United States remain in talks, despite disagreements over a range of issues including agricultural trade and the Russian oil purchases.

Minister for Petroleum and Natural Gas Hardeep Singh Puri said India had signed the one-year deal for 2.2 million tonnes per annum of LPG, sourced from the US Gulf Coast, providing “close to 10 per cent” of India’s annual imports of the fuel.

Puri said it was “the first structured contract of US LPG for the Indian market”.

“In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing,” Puri said in a statement, adding that “one of the largest and the world’s fastest growing LPG market opens up to the US”.

In October, Indian state-backed refiner HPCL-Mittal Energy said it halted purchases of Russian crude after Washington imposed sanctions on Moscow’s two largest oil companies.

Reliance Industries, the privately owned main Indian buyer of Russian crude, has also said it is assessing the implications of the US restrictions, as well as those imposed by the European Union.

India’s economy, the fifth-largest in the world, grew at its fastest pace in five quarters in the three months ending June 30, helped by higher government spending and improved consumer sentiment.

But US tariffs continue to overshadow the economy, with experts projecting that they could shave anywhere between 60 to 80 basis points off GDP growth this fiscal year, if there is no relaxation soon.

Opinion

Editorial

Water vision
01 May, 2026

Water vision

WATER insecurity in Pakistan has been building up for decades as per capita water availability has declined from...
Vaccine policy
01 May, 2026

Vaccine policy

PAKISTAN has finally approved its first National Vaccine Policy; a step the health ministry has rightly described as...
Labour rights
Updated 01 May, 2026

Labour rights

THE annual observance of May Day should move beyond statements about the state’s commitment to the rights of...
UAE’s Opec exit
Updated 30 Apr, 2026

UAE’s Opec exit

THE UAE’s exit from Opec is another sign of the major geopolitical shifts that are reshaping the global order. One...
Uncertain recovery
30 Apr, 2026

Uncertain recovery

PAKISTAN’S growth projections for the current fiscal present a cautiously hopeful picture, though geopolitical...
Police ‘encounters’
30 Apr, 2026

Police ‘encounters’

THE killing of nine suspects by Punjab’s Crime Control Department across Lahore, Sahiwal and Toba Tek Singh ...