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Indian Oil Buys First Iranian LPG Since 2018

CIO Insider Team | Thursday, 26 March, 2026
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Indian Oil Corp. has purchased liquefied petroleum gas from Iran for the first time in nearly eight years, with the nation working to prevent a deepening shortage of the essential cooking fuel caused by the conflict in West Asia.

The refiner will distribute the shipment with its government-owned counterparts Bharat Petroleum Corp Ltd. and Hindustan Petroleum Corp Ltd., according to reports.

According to data intelligence firm Kpler, Indian Oil last procured LPG from Iran in June 2018, and the present shipment consists of approximately 43,000 tons of propane and butane.

That quantity would suffice to satisfy only half a day's requirements in India, where LPG is primarily utilized as a cooking fuel. The nation sources approximately two-thirds of its provisions, with 90 percent of that originating from West Asia, primarily via the Strait of Hormuz, which has been largely obstructed since the war began.

The shortages have caused some Indians to resort to cooking with firewood and have resulted in scuffles in queues for LPG cylinders. New Delhi has restricted deliveries to commercial users like hotels and restaurants and implemented emergency actions to expedite the construction of natural gas pipelines.

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The market has been observing for indications of possible purchasers for Iranian shipments that were previously deemed unattainable because of stringent US sanctions

This marks India's initial acquisition of energy from Iran following the US granting a temporary waiver earlier this month, permitting the nation to procure crude oil or petroleum products from the Islamic Republic.

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The market has been observing for indications of possible purchasers for Iranian shipments that were previously deemed unattainable because of stringent US sanctions.

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Those knowledgeable did not offer any additional information regarding the cargo or the ship transporting it. Nonetheless, ship-tracking information from Kpler indicates that the LPG carrier Sea Bird is carrying Iranian LPG and is expected to reach India’s Mangalore port on Thursday.



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