Will LPG and LNG prices go down? Modi government turns the tide as crude oil trends signal major relief for consumers

Owing to the declining availability from regional exporters, India's LPG imports fell from more than 2 million tonnes per month in January and February to around 1–1.2 million tonnes per month between March and May.

Written by: Victor Dasgupta Edited by: Victor Dasgupta

Published: June 4, 2026, 8:44 AM IST

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https://www.india.com/business/lpg-lng-petroleum-gas-narendra-modi-hardeep-singh-puri-middle-east-strait-of-hormuz-united-states-iran-united-states-petrol-diesel-crude-oil-8435594/ Copy

LPG, PNG prices June 4, 2026: Check domestic, commercial cylinder rates in Delhi, Mumbai, Kolkata, other cities | Image: ANI

New Delhi: In a major relief, India’s imports of crude oil and liquefied petroleum gas (LPG) showed signs of recovery in May after being hit by supply disruptions linked to the conflict in West Asia during March and April. The development was reported by The Times of India on June 3, citing ship-tracking data from Kpler. It is important to note that India’s crude oil imports increased from around 4.5 million barrels per day in March and April to approximately 4.9 million barrels per day in May.

However, the figure remained below the 5.2 million barrels per day recorded in February, indicating that supply chains have not yet fully returned to normal. Supported by efforts to diversify supply sources and enhance domestic availability, LPG imports also improved in May. Supplies of liquefied natural gas (LNG) witnessed an even stronger rebound, surpassing February levels and helping maintain adequate reserves.

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Here are some of the key details:

• Russia retained its position as India’s largest supplier of crude oil.
• Despite growing geopolitical uncertainty, it continued to play a crucial role in ensuring stable supplies.
• In contrast, crude oil shipments from parts of West Asia remained volatile, particularly from Iraq and Kuwait.
• In May, the United Arab Emirates emerged as India’s second-largest crude oil supplier, followed by Saudi Arabia, Brazil, and Venezuela.
• According to Kpler, Russian crude remained attractive to Indian refiners due to its competitive pricing, reliable availability, and flexible logistics arrangements.

Notably, India’s continued purchases of Russian crude also helped shield the country from supply disruptions around the Strait of Hormuz and reduced the need to buy higher-priced crude from producers in the Atlantic Basin.

LPG Situation Improves

Due to the disruptions in shipping routes through the Strait of Hormuz, the LPG supplies from the Gulf region remained under pressure. Owing to the declining availability from regional exporters, India’s LPG imports fell from more than 2 million tonnes per month in January and February to around 1–1.2 million tonnes per month between March and May.

India successfully offset the shortfall by increasing LPG imports from the United States, boosting domestic production, and implementing measures aimed at balancing demand. These steps helped ensure an uninterrupted supply of cooking gas across the country.

Qatar’s Share in LNG Imports Declines

The supplies of the liquefied natural gas (LNG) remained broadly stable despite temporary fluctuations. Along with domestic production, LNG imports helped maintain adequate gas reserves across the country. According to data from Kpler, Qatar’s share in India’s LNG imports has declined in recent months, while supplies from the United States, Oman, Nigeria, and Angola have gained greater importance.

The Times of India report noted that India has managed supply disruptions through a combination of diversified sourcing, increased imports from Atlantic Basin suppliers, effective inventory management, and demand-side measures. This strategy has helped the country maintain a stable energy supply despite ongoing challenges in global markets.