India’s Gas Import Bill Falls 9.4 per cent To $4.8 Billion In FY26

21 Aug 2025 CW Team

India’s natural gas import bill fell 9.4 per cent to $4.8 billion in the first four months of FY26, compared with $5.3 billion in the same period of FY25, according to data from the Petroleum Planning and Analysis Cell (PPAC).

During April–July FY26, the country imported 11,534 million standard cubic metres (mmscm) of LNG, a 12.4 per cent decline year-on-year. In July alone, the bill dropped 20 per cent to $1.2 billion, while import volumes also slipped 20 per cent to 2,946 mmscm.

India’s natural gas consumption fell 7.8 per cent to 23,134 mmscm, while domestic production declined 3 per cent to 11,754 mmscm. State-owned ONGC produced 6,129 mmscm, down from 6,271 mmscm a year earlier, with output remaining below target. Experts attribute the stagnation to ageing fields operated by ONGC and Oil India.

Despite ongoing government efforts to boost domestic oil and gas output through reforms and policy easing, production has remained largely flat, leaving import dependence elevated.

According to ICRA, natural gas demand is projected to grow by 4–6 per cent in FY26, while domestic output will average only about 100 million standard cubic metres per day (mmscmd). As a result, LNG imports are expected to account for around 52 per cent of consumption.

In FY25, India sourced 41 per cent of LNG imports from Qatar, 19 per cent from the US, and 13 per cent from the UAE. India is currently the world’s fourth-largest LNG importer, with a 7 per cent share of global trade, driven by demand from the industrial and oil refining sectors, followed by residential, commercial and transport use.

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