India’s largest oil company turns to Africa for cheaper cooking gas as Algeria offers lower prices than Saudi Arabia

Indian Oil Corporation (IOC), India’s largest state-owned commercial enterprise and oil refiner, has finalised a deal with Algeria’s state energy company Sonatrach to import liquefied petroleum gas (LPG) from 2027 as the South Asian country moves to reduce its dependence on Middle Eastern suppliers.

The agreement comes after Strait of Hormuz disruptions exposed India’s reliance on Middle Eastern suppliers, causing LPG shortages and pushing the country to seek cheaper alternatives, sources told Reuters.

Under the deal, IOC will import between 45,000 and 55,000 metric tonnes of LPG each month through very large gas carriers, equivalent to about 540,000 to 660,000 tonnes annually.

The shipments will contain a mix of propane and butane, which are widely used as cooking fuel in Indian households.

Algeria strengthens role in India’s energy supply chain