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

India's imports of petroleum products from the United States, primarily liquefied petroleum gas (LPG), jumped 254% to $2.60 billion in the first quarter of 2026-27, compared to a 57.5% decline in crude oil imports from the country, according to official figures. The surge in LPG imports during April-June was attributed to global energy supply disruptions caused by the war in West Asia, particularly affecting supplies from the Gulf region, experts said, under anonymity.

LPG, a mixture of propane and butane, is often imported in liquid form by oil marketing companies. Imports of crude oil from the US fell from $3.70 billion in Q1 2025 to $1.57 billion in Q1 2026, driven by commercial considerations of Indian refiners. Meanwhile, petroleum products imports rose from around $735 million in Q1 2025-26 to $2.60 billion in the corresponding period this year.

Overall, India's merchandise imports from the US amounted to $16.65 billion in Q1 2026-27, marking a nearly 24% increase from $13.44 billion in the same quarter of the previous fiscal year. India's overall merchandise exports to the US, however, remained largely flat, falling to $25.46 billion from $25.48 billion a year earlier.

Experts and industry insiders suggest there is significant potential to expand both exports and imports with the US, aided by trade diversification and a focus on individual products. The commerce ministry is set to convene a meeting of industry associations and export promotion councils on Tuesday to discuss measures to boost India's exports, including trade with the US.

The meeting aims to help India achieve a record $1 trillion in combined goods and services exports this fiscal year.