India’s petroleum product imports fell sharply in March 2026, dropping to their lowest level for the month in eight years as disruptions in liquefied petroleum gas (LPG) supplies significantly reduced inbound cargo volumes. Trade and shipping data showed the decline was driven mainly by lower LPG imports, which form a major share of India’s petroleum product purchases.
Industry sources said delays in cargo availability, shipping disruptions in West Asian trade routes and tighter global LPG supplies affected import arrivals during the month. India relies heavily on LPG imports to meet domestic cooking fuel demand, making supply disruptions particularly impactful on overall petroleum product import volumes.
Analysts noted that geopolitical tensions in West Asia, including concerns around the Strait of Hormuz, continued to influence tanker movement, freight rates and insurance costs, contributing to supply-side challenges for LPG cargoes bound for India. Some refiners and importers reportedly adjusted procurement schedules amid elevated freight and logistics costs.
Despite the decline in imports, domestic fuel availability remained stable due to adequate inventory levels and increased refinery output. India’s state-run oil marketing companies also relied on strategic planning and diversified sourcing to minimise the impact of lower LPG arrivals on consumers.
Market experts said the drop in petroleum product imports reflects the vulnerability of India’s energy supply chain to disruptions in global shipping and energy markets. However, they expect import volumes to recover in the coming months as supply chains normalise and additional LPG cargoes enter the market.
India remains one of the world’s fastest-growing energy consumers, with rising demand for LPG, transport fuels and petrochemical feedstocks continuing to drive long-term import requirements despite short-term volatility in global energy trade.
