India’s natural gas import bill rose 23% to $8.5 billion during April–September 2026, up from $6.9 billion in the same period a year earlier, as higher international energy prices increased the cost of imported supplies. Data from the Petroleum Planning and Analysis Cell (PPAC), reported by Moneycontrol on October 26, shows that import spending rose substantially faster than the volume of gas purchased.
India imported 18,189 million standard cubic metres (MMSCM) of liquefied natural gas (LNG), an increase of 4.4% year over year. At the same time, domestic natural gas production declined 4.4%, pushing the country’s import dependence higher. The figures highlight India’s exposure to international energy prices and supply disruptions, particularly amid continued risks to shipping and energy flows through the Strait of Hormuz.
Key Takeaways
- Import bill: India’s natural gas import spending increased 23% to $8.5 billion in April–September FY2026-27.
- Import volumes: LNG imports rose 4.4% to 18,189 MMSCM.
- Domestic production: Natural gas output declined 4.4% to 16,804 MMSCM.
- Import dependence: The share of gas consumption met through imports rose to 52.3%, from 50.1%.
- Demand remained flat: Total natural gas consumption was virtually unchanged at 34,769 MMSCM.
- Main pressure: Higher international prices and supply uncertainty associated with the West Asia conflict increased India’s exposure to energy-market volatility.
India’s Natural Gas Import Bill: Key Numbers
The latest figures show that India’s import expenditure increased much faster than the quantity of LNG purchased.
| Indicator | April–September FY2026-27 | Year-earlier period | Change |
|---|---|---|---|
| Natural gas import bill | $8.5 billion | $6.9 billion | +23% |
| LNG imports | 18,189 MMSCM | 17,414 MMSCM | +4.4% |
| Domestic natural gas production | 16,804 MMSCM | 17,585 MMSCM | -4.4% |
| Total natural gas consumption | 34,769 MMSCM | 34,773 MMSCM | Nearly unchanged |
| Import dependence | 52.3% | 50.1% | +2.2 percentage points |
Source: Petroleum Planning and Analysis Cell data, as reported by Moneycontrol.
The figures reveal two simultaneous pressures: imported gas became more expensive, and domestic production declined. Even with consumption broadly unchanged, India had to rely more heavily on foreign supplies.
Why India’s Natural Gas Import Bill Increased
Higher international energy prices
The increase in import spending was primarily driven by higher prices rather than a sharp increase in the volume of gas purchased.
India imports LNG because natural gas must be cooled into liquid form for transportation by specialised ships. Its landed cost depends on international LNG prices, long-term contract terms, shipping expenses and other supply-related costs.
The West Asia conflict has added uncertainty to global energy markets. Risks to commercial shipping through the Strait of Hormuz are particularly important because the route is a major channel for oil and gas shipments from the Gulf.
When cargo movements face disruption or buyers compete for limited supplies, import-dependent economies can face higher prices and transportation costs.
Domestic production declined
India’s domestic natural gas production fell 4.4% to 16,804 MMSCM during the first six months of FY2026-27, compared with 17,585 MMSCM in the corresponding period last year.
Lower domestic output means that a larger share of demand must be met through imports, unless consumption falls or alternative energy sources make up the difference.
The production decline is therefore important beyond the headline import bill. It exposes India to international price movements even when domestic demand does not increase significantly.
Import dependence increased
India’s natural gas import dependence rose to 52.3% in April–September, compared with 50.1% a year earlier.
That means more than half of the country’s natural gas requirements were met through imported supplies during the period. A sustained increase in this dependence can make energy costs more sensitive to global prices, exchange-rate movements and geopolitical disruptions.
What the Numbers Mean for India’s Economy
Pressure on the import bill and external balances
A higher natural gas import bill increases the amount India spends overseas on energy. Other things being equal, this can put pressure on the country’s trade balance and current account.
The effect on the overall external balance will also depend on crude oil imports, petroleum product exports, other trade flows and the exchange rate. Natural gas alone does not determine India’s total energy trade position, but rising import costs add to the challenge.
Possible impact on industries
Natural gas is used across several parts of the Indian economy, including fertiliser production, city-gas distribution, industrial manufacturing and power generation.
Higher gas prices can increase input costs for businesses that rely on imported supplies. The eventual impact on consumers depends on how costs are passed through, the pricing arrangements in each sector, government policies and the availability of alternative fuels.
Fertiliser producers are particularly important because natural gas is a major feedstock for nitrogen-based fertilisers. Higher input costs can affect production economics and potentially increase pressure on government subsidy spending, depending on domestic pricing and policy arrangements.
City-gas businesses and industrial users may also face cost pressures when imported LNG is needed to supplement domestic supplies.
Global Supply Risks and the Strait of Hormuz
The Strait of Hormuz is a critical shipping corridor linking the Persian Gulf with international markets. Disruptions to traffic through the strait can affect the movement of energy cargoes from major Gulf producers.
For India, the risks are not limited to whether a shipment arrives. Uncertainty can also influence global LNG prices, freight rates, insurance costs and the availability of alternative cargoes.
India can diversify suppliers and routes, but replacing large volumes quickly may be difficult when other buyers are competing for supplies. Long-term contracts can provide some protection against spot-market volatility, although the level of protection depends on the contract’s pricing formula and delivery arrangements.
The higher import bill recorded in April–September reflects the cost of supplies during that period. It does not, by itself, establish how much prices or expenditure will rise in the following months.
September Shows Why Spending and Volumes Can Diverge
September’s figures illustrate the difference between the volume of gas imported and the amount paid for it.
India’s LNG imports fell 8.5% year over year to 2,957 MMSCM, compared with 3,233 MMSCM in September 2025. Yet the monthly import bill remained broadly unchanged at approximately $1.2 billion.
This suggests that the average cost of imported gas was higher than a year earlier. However, the monthly figures should not be used to calculate a precise spot-market price because the total bill also reflects contract terms, shipment timing and the composition of imported supplies.
The wider lesson is that lower import volumes do not necessarily translate into lower expenditure when international prices are elevated.
Petroleum Product Trade Shows a Different Trend
India’s natural gas trade was not the only part of the energy sector affected by changing prices and supply conditions.
During April–September FY2026-27, petroleum product imports declined 24.5% in value to $8.6 billion, from $11.4 billion a year earlier, according to the same Moneycontrol report.
Meanwhile, petroleum product exports fell 18% in volume to 26.2 million tonnes, but their value increased 33% to $26.6 billion.
| Petroleum trade indicator | April–September FY2026-27 | Year-earlier period | Change |
|---|---|---|---|
| Petroleum product imports, value | $8.6 billion | $11.4 billion | -24.5% |
| Petroleum product exports, volume | 26.2 million tonnes | — | -18% |
| Petroleum product exports, value | $26.6 billion | — | +33% |
These figures concern refined petroleum products, not natural gas, so the two categories should not be directly compared as if they represented the same commodity. Together, however, they demonstrate how price changes and supply priorities can affect energy trade values differently from physical volumes.
The Bigger Picture
India’s rising natural gas import bill highlights the challenge of balancing energy demand, domestic production and supply security. Natural gas is an important input for industrial activity, fertilisers and city-gas networks, but greater reliance on imported LNG leaves the country exposed to international market conditions.
Over the longer term, domestic exploration and production, supplier diversification, storage and infrastructure improvements, energy efficiency and the availability of alternative energy sources could influence that exposure. Each option involves different costs, technical constraints and implementation timelines. The latest data makes the underlying issue clear: a relatively small increase in imported volume can still produce a substantial rise in spending when prices climb.
FAQs
1. Why did India’s natural gas import bill rise 23%?
The import bill rose from $6.9 billion to $8.5 billion during April–September FY2026-27, primarily because international gas prices were higher amid energy-market uncertainty linked to the West Asia conflict.
2. How much natural gas did India import during April–September 2026?
India imported 18,189 million standard cubic metres of LNG, up 4.4% from 17,414 MMSCM in the same period a year earlier.
3. Why is India becoming more dependent on imported natural gas?
Domestic natural gas production fell 4.4% during the period, while overall consumption remained nearly unchanged. As a result, imports accounted for a larger share of the country’s gas requirements.
4. How could higher LNG prices affect Indian consumers?
Higher import costs can increase expenses for gas distributors and industries that use LNG. Whether consumers face higher prices depends on domestic pricing policies, contracts, subsidies and how much of the increase suppliers pass through.
5. What is the role of the Strait of Hormuz in India’s gas imports?
The Strait of Hormuz is a major shipping route for energy supplies from the Gulf. Security risks or disruptions can affect cargo availability, transportation costs and international energy prices, creating additional uncertainty for import-dependent countries such as India.
Looking Ahead
India’s natural gas import bill will depend on international LNG prices, the availability of Gulf supplies, domestic production and demand from sectors such as fertilisers, industry and city-gas distribution. The next set of monthly PPAC data will help show whether the rise in import costs persists or moderates as market conditions change.
For policymakers and energy companies, the central challenge is reducing exposure to supply shocks without disrupting industries that depend on natural gas. Diversifying supplies and improving domestic energy security may help over time, but the immediate cost burden will continue to depend heavily on global prices and the reliability of international shipments.
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