India's Natural Gas Import Bill Jumps 23% To $8.5 Billion In H1

India's natural gas import bill increased 23% to $8.5 billion during April-September FY27 from $6.9 billion a year earlier, driven primarily by higher international energy prices amid the West Asia conflict.

As per a report by Moneycontrol citing Petroleum Planning and Analysis Cell (PPAC) data, the increase in import expenditure significantly outpaced growth in liquefied natural gas (LNG) volumes.

India imported 18,189 million standard cubic metres (MMSCM) of LNG during the six-month period, up 4.4% from 17,414 MMSCM in the corresponding period last year.

Import Dependence Rises To 52.3%

The country's reliance on imported natural gas increased to 52.3% during the first half of FY27, compared with 50.1% a year earlier.

Domestic production declined 4.4% to 16,804 MMSCM from 17,585 MMSCM.

Meanwhile, overall natural gas consumption remained nearly unchanged at 34,769 MMSCM, against 34,773 MMSCM previously.

September figures highlighted continued pricing pressure.

India spent approximately $1.2 billion on gas imports during the month, broadly unchanged year-on-year, despite volumes declining 8.5% to 2,957 MMSCM.

The divergence suggests that average import costs remained elevated.

Disruptions to shipping through the Strait of Hormuz, a crucial route for international energy trade, have added uncertainty to LNG supplies.

Higher freight expenses and security risks have further complicated energy procurement.

Petroleum Imports Decline As Export Earnings Increase

While natural gas import expenditure increased, India's petroleum product import bill fell 24.5% to $8.6 billion during April-September FY27 from $11.4 billion a year earlier.

Import volumes dropped to 13.4 million tonnes from 25.6 million tonnes. Petroleum product exports also declined 18% in volume terms to 26.2 million tonnes as domestic supplies received priority amid global disruptions.

However, export earnings increased 33% to $26.6 billion, reflecting higher international petroleum product prices.

The contrasting trends underline the impact of volatile global energy markets on India's external trade.

Sustained increases in natural gas prices could further raise import expenditure and put pressure on the country's current account deficit.

Continued instability in West Asia remains an important risk for India's energy supply chains and import costs.