India’s crude oil import volumes declined 4.3% year-on-year in April 2026, marking the second consecutive month of disruption following escalating geopolitical tensions in West Asia and the continued closure of the Strait of Hormuz. However, despite importing lower volumes, India’s oil import bill surged nearly 50%, reflecting the sharp spike in global crude prices and intensifying pressure on the country’s energy security and trade balance.
Key Highlights
- India’s import oil bill surged despite lower volumes as global oil prices soared sharply.
- LNG imports and gas consumption declined significantly amid supply disruptions and weaker domestic demand.
According to provisional data released by the Petroleum Planning and Analysis Cell (PPAC), India imported 20.1 million metric tonnes (MMT) of crude oil in April, compared to 21 MMT during the same period last year. Yet the total cost of these imports rose sharply to $16.3 billion, significantly higher than the $10.7 billion paid in April 2025, underscoring the inflationary impact of elevated international oil prices.
The surge in prices has been directly linked to the prolonged disruption of oil flows through the Strait of Hormuz, one of the world’s most critical energy chokepoints. India, which imports more than 80% of its crude oil requirements, remains highly vulnerable to global supply shocks and pricing volatility.
LNG Imports and Gas Consumption Decline
The energy strain was also visible in India’s natural gas market. Liquefied Natural Gas (LNG) imports dropped nearly 30% in April to 1,954 million standard cubic metres (MMSCM), compared to 2,778 MMSCM a year earlier. The LNG import bill also fell by around 25%, dropping from $1.2 billion to $0.9 billion, largely due to lower domestic consumption rather than supply improvements.
India’s total natural gas consumption fell 16.7% year-on-year to 4,703 MMSCM, while net domestic production declined 4.2% to 2,749 MMSCM, reflecting weaker industrial demand amid higher fuel costs and tighter supply allocation.
As a result, India’s dependency on imported natural gas reduced to 41.6%, compared to 49.2% during the same month last year.
Also Read: Trade Deficit Widens to $28.38 Billion in April Amid West Asia Crisis
LPG Demand Contracts as Supply Prioritisation Tightens
Public sector oil companies also reported lower LPG sales. Combined sales of domestic, auto, and commercial LPG declined 12.7% year-on-year to 2.2 MMT, after the government restricted commercial users to 70% of pre-crisis supply levels to ensure uninterrupted household availability.
Indian refiners, including Indian Oil and Bharat Petroleum, have responded by diversifying crude sourcing, sharply increasing spot purchases and boosting Russian crude intake to offset Middle East disruptions.
Energy Costs Raise Broader Economic Concerns
India’s overall net oil and gas import bill rose 23% to $13.9 billion in April, raising concerns over imported inflation, fiscal pressures and further weakening of the rupee.
Analysts warn that if the Strait of Hormuz disruption persists, India could face prolonged inflationary pressures, higher subsidy burdens, and wider trade deficits - forcing policymakers to accelerate energy diversification and strategic reserve expansion.
