In a significant development, India has purchased its first cargo of Iranian liquefied petroleum gas (LPG) since 2019, after the United States temporarily removed sanctions on Tehran’s oil and refined fuels, according to LSEG trade flows data and three industry sources.
The sanctioned tanker Aurora, carrying Iranian LPG, is expected to reach the west coast port of Mangalore shortly. The cargo will be shared among India’s three state-owned fuel retailers: Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL) .
Why This Matters: A Return to Iranian Energy
India had shunned energy purchases from Iran in 2019 under pressure from Western sanctions. This new purchase marks a significant shift, driven by two factors:
| Factor | Details |
|---|---|
| US Sanctions Eased | The US temporarily removed sanctions on Iran’s oil and refined fuels, allowing the transaction. |
| Global Energy Crunch | India has been hit hard by disruption of energy shipments via the Strait of Hormuz caused by the US-Israeli war with Iran. |
The Deal: Details of the Purchase
| Aspect | Details |
|---|---|
| Cargo | Iranian LPG (liquefied petroleum gas) |
| Tanker | Aurora (sanctioned tanker) |
| Destination | Mangalore port, west coast of India |
| Buyers | IOC, BPCL, HPCL (shared) |
| Payment | In rupees (to be made to a trader) |
| Initial Destination | The tanker was initially bound for China, according to LSEG data. |
India’s LPG Situation
India is the world’s second-largest LPG importer and is currently battling its worst gas crisis in decades. The government has been forced to cut supplies to industries to shield households from cooking gas shortages.
| LPG Fact | Data |
|---|---|
| India’s LPG Consumption (2025) | 33.15 million metric tons |
| Import Dependence | ~60% of demand |
| Middle East Share of Imports | ~90% |
Official Confusion: Differing Accounts
While industry sources confirmed the purchase, there was some confusion in official statements. Rajesh Kumar Sinha, special secretary in the federal shipping ministry, said at a press conference on Wednesday: “(There are) no loaded cargoes from Iran, we have not heard of that.”
The three oil marketing companies and India’s oil ministry did not immediately respond to requests for comment. The discrepancy may reflect a temporary waiver or a limited transaction rather than a full-scale resumption of Iranian imports.
Moving Stranded Cargoes
India has been working to extract its stranded LPG cargoes from the Strait of Hormuz, which has been disrupted since the conflict began on February 28.
| Stranded Cargoes Moved So Far |
|---|
| Shivalik |
| Nanda Devi |
| Pine Gas |
| Jag Vasant |
India is also loading LPG onto its empty vessels stranded in the Persian Gulf.
