India is buying much more LPG from the US, but much less crude — here’s why

• US LPG imports rose 254 per cent in April-June.
• India’s US crude oil imports fell 57.5 per cent.
• India is targeting $1 trillion in goods and services exports this year.

India’s trade with the US is seeing an unusual shift in its energy basket. India US trade in 2026 shows a sharp rise in purchases of petroleum products, mainly liquefied petroleum gas (LPG), even as imports of crude oil from the US have fallen substantially.

India imported $2.60 billion worth of petroleum products from the US in April-June, up 254 per cent from about $735 million in the same period of 2025-26, according to government data. LPG accounted for most of the increase.

Crude oil moved in the opposite direction. Imports from the US fell 57.5 per cent year-on-year to $1.57 billion in the first quarter of 2026-27, from $3.70 billion a year earlier.

The contrasting numbers do not necessarily point to a change in India’s overall energy demand. Experts reportedly said the rise in LPG imports was partly linked to disruptions in global energy supplies following the war in West Asia, particularly those affecting supplies from the Gulf region.

LPG, commonly used as cooking gas, is made up mainly of propane and butane. Indian oil marketing companies can import these components separately in liquid form, depending on supply and pricing conditions.

The energy basket is telling a different story

The sharp fall in crude imports from the US also does not necessarily mean Indian refiners are moving away from American oil. Experts reportedly said crude buying can fluctuate based on the commercial decisions of refiners, including factors such as prices, availability and the economics of individual shipments.

The broader trade numbers show why the shift in petroleum imports matters. India imported merchandise worth $16.65 billion from the US during April-June 2026, up nearly 24 per cent from $13.44 billion in the same quarter a year earlier.

Indian merchandise exports to the US, however, remained almost unchanged at $25.46 billion, compared with $25.48 billion a year earlier.

That leaves considerable room for both sides of the trade relationship to expand. Experts and people familiar with the matter reportedly said India’s exports have continued to benefit from diversification across markets and products, while there is scope to increase both exports to and imports from the US.

The Commerce Ministry has convened industry associations and export promotion councils on September 1 to discuss ways to increase Indian exports, including the country’s trade performance with the US.

$1 trillion export target comes into focus

The push comes as India looks to raise its overall export numbers. Merchandise exports during April-July 2026 rose more than 17 per cent year-on-year to $173.78 billion, according to people familiar with the matter. A similar double-digit growth rate is expected for August, they reportedly said.

India is aiming to reach $1 trillion in combined goods and services exports during the current financial year. The country recorded total exports of $863 billion in 2025-26, including $442 billion in merchandise exports and $421 billion in services.

The latest trade discussions also come ahead of Commerce Minister Piyush Goyal’s expected visit to the US for the G20 Trade Ministerial in Milwaukee, beginning September 30. The two countries’ trade ministers may hold bilateral discussions on the sidelines of the two-day meeting, people familiar with the matter reportedly said.

For now, the petroleum numbers offer an interesting snapshot of how quickly the composition of India’s US trade can change. In just one year, LPG has emerged as a much larger part of the import bill, while crude oil has moved sharply in the other direction.