LPG Subsidy Shake-Up: US Gas Imports May Hike Prices, Burden Consumers

Business
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News18•01-01-2026, 12:27
LPG Subsidy Shake-Up: US Gas Imports May Hike Prices, Burden Consumers
- •LPG subsidy calculation is changing due to new long-term US gas import agreements.
- •Indian Oil, Bharat Petroleum, Hindustan Petroleum signed deals for 2.2 million metric tons/year from US, starting 2026.
- •US gas transportation costs are four times higher than Saudi Arabia; current formula doesn't cover this.
- •Oil companies want US benchmark prices included, potentially increasing consumer burden.
- •Government faces challenge balancing energy security, company finances, and consumer prices.
Why It Matters: New US gas import deals could alter LPG subsidy, potentially raising prices for consumers.
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