FPJ News Service mumbai

India plans to end taxes on U.S. ethane and liquefied petroleum gas (LPG) imports under broader negotiations with Washington as it looks to reduce its trade surplus and ease its tariff burden, three sources familiar with the matter said, Reuters reported.

The proposal to get rid of duties for the products used for cooking gas and petrochemical production comes as India mulls scrapping import tax for U.S. liquefied natural gas (LNG) and boosting purchases of the fuel from the United States.

As President Donald Trump's sweeping duties rattle economies and markets, several Asian countries running trade surpluses with Washington are looking to import more U.S. energy in hopes of avoiding heavier tariffs. India levies import taxes of 2.5% on ethane, mainly used as a feedstock for producing petrochemicals, and propane and butane, which are used for LPG used mostly as cooking fuel.

In the 2023-24 fiscal year, India imported 18.5 million metric tons of LPG worth $10.4 billion, according to Indian government data, mostly from the Middle East. It is the No.2 buyer of U.S. ethane after China, according to the U.S. Energy Information Administration, importing 65,000 barrels per day last year, compared with 227,000 bpd for China. However, the U.S.-China trade war has sent tariffs surging and is likely to curtail China's imports.