India’s imports of refined petroleum products fell to an average of 765,000 barrels per day (b/d) in March 2026. This decline was primarily attributed to the closure of the Strait of Hormuz, which affected liquefied petroleum gas (LPG) supplies, resulting in the lowest overall import volume since 2018.
According to the Organization of the Petroleum Exporting Countries (OPEC) in its May monthly oil market report (MOMR), “Product imports into India fell to the lowest level since 2018 due to a sharp drop in LPG, which India primarily sources from the Middle East.” The Petroleum Planning and Analysis Cell (PPAC) reported that India’s refined petroleum product imports slipped by 25.5 percent year-on-year in March 2026.
OPEC noted that India’s product imports averaged 765,000 b/d in March, marking the lowest level since December 2018. Month-on-month, this represented a decrease of 245,000 b/d, or 24 percent. The decline was chiefly driven by a 397,000 b/d drop in LPG imports, slightly mitigated by increases in other products, typically including bitumen. Year-on-year, product imports declined by 476,000 b/d, or 38 percent.
In March 2026, India’s crude oil imports also hit an eight-month low of 4.5 million barrels per day, influenced by trade flow disruptions, despite a temporary suspension of sanctions. Month-on-month, crude imports decreased by 775,000 b/d, nearly a 15 percent fall, according to the OPEC report.
The International Energy Agency (IEA) highlighted the effects of the ongoing conflict in West Asia on LPG flows, noting that India’s LPG imports had plummeted by more than half during the initial two months of the conflict (March-April 2026), resulting in a loss of approximately 430,000 b/d. The IEA emphasized that this conflict has precipitated a global energy crisis of unprecedented scale, with roughly 3.4 billion people in the developing world relying on LPG for cooking.
The supply disruptions in LPG imports have had a noticeable impact on consumption, as LPG is a vital cooking fuel for over 335 million households in India. OPEC’s report indicated that LPG consumption experienced the steepest decline in March 2026, dropping about 120,000 b/d year-on-year, a stark contrast to a year-on-year increase of 100,000 b/d recorded in February 2026.
According to PPAC, India’s LPG consumption fell nearly 16 percent month-on-month and 13 percent year-on-year to 2.38 million tonnes (mt) on a provisional basis, the lowest level in 21 months. However, the cumulative LPG consumption for the fiscal year 2026 showed a 6 percent year-on-year increase, totaling 33.21 mt on a provisional basis, representing the highest annual growth since fiscal year 2019.
Published on May 19, 2026
