India’s US LPG imports surge 254% to $2.6 billion in Q1 FY27, crude purchases fall 57.5%

India’s crude oil imports from the US fell from $3.70 billion in April-June 2025 to $1.57 billion in April-June 2026.

India’s imports of petroleum products from the US, mainly liquefied petroleum gas (LPG), surged 254% year-on-year to $2.60 billion in the first quarter of 2026-27, even as crude oil imports from the country fell 57.5% to $1.57 billion during the same period, according to government data.

The rise in LPG imports during April-June was partly driven by global energy supply disruptions linked to the war in West Asia, particularly disruptions affecting supplies from the Gulf region, experts said, requesting anonymity. LPG, or cooking gas, is a variable mix of propane and butane. Oil marketing companies often import the two components separately in liquid form.

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US crude oil imports fall 57.5%

According to the latest available granular data, India’s crude oil imports from the US fell from $3.70 billion in April-June 2025 to $1.57 billion in April-June 2026. Experts said fluctuations in crude imports are driven by the commercial considerations of Indian refiners.

At the same time, imports of petroleum products, mainly liquid propane and butane, rose from about $735 million in the first quarter of 2025-26 to $2.60 billion in the corresponding period this year.

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India’s US imports rise 24%, exports remain flat

Overall, India imported merchandise worth $16.65 billion from the US in the first quarter of 2026-27, including crude oil and petroleum products, a nearly 24% increase from $13.44 billion in the same quarter of the previous financial year. India’s merchandise exports to the US, however, were largely flat, slipping marginally to $25.46 billion in the first quarter of 2026-27 from $25.48 billion a year earlier, the data showed.

Experts and people familiar with the matter said India’s overall exports have continued to show an upward trend, aided by trade diversification, a country-specific approach and greater focus on individual products. They said there was considerable scope to expand both exports to and imports from the US.

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Commerce ministry to meet industry on exports

The commerce ministry has convened a meeting of industry associations and export promotion councils on Tuesday to discuss ways to boost India’s exports, including the country’s trade performance with the US, they said.

India’s cumulative merchandise exports in the first four months of the current financial year, April-July 2026, rose more than 17% to $173.78 billion, and a similar double-digit annual growth rate is expected for August, according to people familiar with the matter.

They said the meeting was aimed at helping India achieve a record $1 trillion in combined goods and services exports in the current financial year. India recorded exports of $863 billion in 2025-26, comprising $442 billion in merchandise and $421 billion in services.

The meeting also comes ahead of commerce minister Piyush Goyal’s expected visit to the US for the G20 Trade Ministerial in Milwaukee, beginning September 30. The two countries’ trade ministers may hold bilateral discussions on the sidelines of the two-day meeting, people familiar with the matter said.

Rajeev Jayaswal is a senior journalist, author and communication strategist with over three decades of experience covering India's economy, energy, trade and public policy. He is Senior Editor at Hindustan Times and author of The Lobbyists, recognised for insightful reporting, in-depth analysis and policy-focused journalism.Read More