Union oil minister Hardeep Singh Puri on Monday said that India has signed a ‘historic’ deal with the US to import liquefied petroleum gas (LPG) amid growing pressure to diversify country’s energy sources.

Puri said state-run oil companies have clinched a one-year deal to to import 2.2 million tonnes per annum (MTPA) LPG from the US, buying around 10 percent of India's annual share in 2026.

In a post on the social media platform X, the minister wrote, “A historic first! One of the largest and the world's fastest-growing LPG market opens up to the United States. In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing. In a significant development, Indian PSU oil companies have successfully concluded a 1-year deal for imports of around 2.2 MTPA LPG.”

He said a team of officials from Indian Oil Corportation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corportation Limited, had visited the US and engaged in discussions with major US producers over the last few months, which have been concluded now.

The deal comes amid speculation that a broader trade deal between New Delhi and Washington is likely to be concluded by the end of 2025. Under the trade deal, the Donald Trump's administration could drop the 25 percent tariff imposed on Indian exports for buying Russian energy.

Trump administration had imposed 50 percent tariffs on Indian shipments, including a 25 percent penalty for purchasing Russian crude.

In September, Union commerce and industry minister Piyush Goyal had said India was expected to increase energy trade with New Delhi while addressing an event in New York.

The minister also pointed out that India powers US’ growth story by providing “huge amount of talent and innovation". “We expect to increase trade with US on energy products in the years to come," Goyal had told those attending the US-India Strategic Partnership Forum in New York.

In February this year, India and the US in a joint statement had also vowed deepening energy cooperation between the two nations.

In the last few weeks, India has actively made efforts to diversify its oil sources, reducing the dependence on Russian imports. Moreover, there has been “a lot of positive developments” in recent talks between the two nations after months of friction and stalled discussions.

Earlier this week, President Donald Trump said the US was getting close to reaching a deal with India that would expand economic and security ties between the two countries, boost US energy exports and promote investments in key US sectors.

"We're getting a fair deal, just a fair trade deal," Trump told reporters in the Oval Office at the swearing-in of his envoy to India, Sergio Gor. "We're making a deal with India, much different deal than we had in the past."