LNG Price, Shipping Surge Adds to India’s Growing Import Bill

India's LNG imports have shot up by 24 per cent to $5.6 billion during April-July of the current financial year, up from $4.5 billion in the same period of the previous financial year with shipments being increasingly sourced from the US amid the West Asia crisis, according to data compiled by the Ministry of Petroleum and Natural Gas.

India has gone in for a sharp increase in purchases of LNG and LPG from the US, as the choking of the Strait of Hormuz has disrupted supplies from the Gulf countries.

In July, India’s LNG imports increased by 9.1 per cent to $1.2 billion from $1.1 billion in July 2025. Import volumes during the month stood at 2,915 mmscm, up 1.5 per cent from 2,872 mmscm in July last year, official figures showed.

India has diversified its sources for the import of liquefied natural gas (LNG) from six countries earlier to a total of 15 countries in order to safeguard its energy supplies against supply chain disruptions due to the West Asia crisis.

The country has also broadened its crude oil sourcing network, with imports now coming from 41 countries compared with 27 earlier.

“This diversification has reduced dependence on any particular country, region or transit route and enhanced India's ability to manage supply disruptions and market volatility,” a senior official said.

Apart from the higher prices due to the West Asia crisis, shipping costs have also surged as cargoes have to be transported across longer distances, the official said.

India imported about 0.62 million tonnes of LPG from the United States in August, in addition to 0.89 million tonnes in July, accounting for more than 73 per cent of the country's LPG imports, according to data gathered by Kpler.

The July volumes from the US volume were almost equal to the highest-ever monthly LPG import from the United Arab Emirates, India's traditional supplier, of 0.891 million tonnes in October 2025.

The LPG imports from the UAE fell to about 1,40,000 tonnes in August, while Qatar supplied around 60,000 tonnes, Kpler data showed. Saudi Arabia supplied no LPG to India in either July or August.