What is LPG import and trading in India?

LPG import & trading involves sourcing liquefied petroleum gas from international suppliers (non-West Asia to reduce geopolitical risk), importing via ports, and distributing to retailers, commercial users, and industrial consumers. India consumes 28 million tonnes annually with only 2–3 independent importers currently operating, creating a market gap.

How much does it cost to start LPG import business in India?

₹15–₹25 crore initial investment: vessel charter/ownership (₹8–₹12 crore for 2–3 years), port storage infrastructure (₹4–₹6 crore), regulatory compliance & working capital (₹3–₹5 crore). Smaller players can start with chartered vessels and shared storage for ₹8–₹12 crore.

Is LPG import profitable in India?

Yes. Current shortage-driven LPG pricing supports ₹800–₹1,200/MT trading margins on 50,000 MT/year volumes = ₹4–₹6 crore revenue. Add logistics fees (₹75–₹150 lakh) and contract supply revenue (₹2–₹3 crore). Projected EBITDA: 12–15% of gross revenue, or ₹8–₹12 crore annually at scale.

What regulations apply to LPG import business in India?

Petroleum Act 1934 (Section 6: import licence from Ministry of Petroleum); PESO certification for safety; Shipping Act 1958 (maritime operations); GST 5% on LPG; Port Authority clearance; EIA for storage facilities; DGFT import authorisation. Typical approval timeline: 6–9 months.

LPG Import & Trading Business India 2026 — Guide

AI SummaryIndia's LPG market, valued at ₹85,000–₹95,000 crore annually and serving 27 crore domestic users, faces acute supply constraints due to West Asia geopolitical instability and reliance on only 2–3 independent importers. Independent LPG traders who source from Africa, Americas, and Southeast Asia can capture 12–15% EBITDA margins by servicing regional distributors, commercial chains (hotels, restaurants), and industrial users. This opportunity is ideal for entrepreneurs with ₹15–₹25 crore capital, maritime logistics expertise, or commodity trading backgrounds, and should be executed immediately before larger PSUs consolidate supply routes.