Indian Oil Secures LPG Deal and Mauritius Fuel Pact

The Indian Oil Corporation is expanding its global energy footprint through new import and export agreements. The state-owned refiner is nearing a deal with Algeria's state-owned Sonatrach to import liquefied petroleum gas (LPG) starting in 2027. Under the proposed free-on-board agreement, Indian Oil would lift one very large gas carrier of 45,000 to 55,000 metric tonnes of a propane and butane mix monthly. This move is part of a broader strategy to diversify energy sources away from the Middle East, as Algerian LPG is priced below the Saudi Aramco Contract Price.

Simultaneously, Indian Oil signed a five-year agreement with the State Trading Corporation of Mauritius to supply petrol, diesel, and aviation turbine fuel. Announced during a visit by Petroleum Minister Hardeep Puri, this marks the first time an Indian public-sector oil entity has concluded a fuel supply agreement with a country outside South Asia. The deal is intended to provide Mauritius with price stability and energy security as its economy faces pressure from the Iran war.

To further ensure domestic supply resilience for household cooking fuel, Indian state-owned fuel retailers, including Bharat Petroleum and Hindustan Petroleum, plan to source up to 25% of LPG imports from the United States in 2027.