India’s imports of crude oil, liquefied natural gas (LNG) and liquefied petroleum gas (LPG) from the United States fell 43% in September from the previous month, as supplies from West Asia rebounded despite disruptions caused by the ongoing conflict, Business Standard reported, citing Kpler data.
Combined imports of the three fuels from the US dropped to 1.22 million tonnes in September from 2.13 million tonnes in August, marking their lowest level since April, as per the report.
Supplies were also marginally lower than in September 2025 and more than 50% below the two-year high of 2.86 million tonnes recorded in October 2025.
In contrast, India’s oil and gas imports from West Asia rose 67% month-on-month to 13.56 million tonnes in September, according to ship-tracking data accessed by the publication.
Why West Asian suppliers remain crucial
West Asian producers, particularly the United Arab Emirates (UAE), Iraq and Saudi Arabia, are expected to remain among India’s leading energy suppliers even after the conflict ends and cannot easily be replaced by the US, according to refining officials cited by Business Standard.
Gulf oil exports recovered to around 16.5 million barrels per day in September, approaching pre-war levels, despite a significant reduction in the share of shipments passing through the Strait of Hormuz.
About 60% of Gulf oil exports crossed the strategic waterway, compared with 83% before the war, according to a note by Standard Chartered cited by trade publication OilPrice, as per the report.
Saudi Arabia, the UAE and Iraq have adapted to disruptions by using pipelines, alternative export ports and ship-to-ship transfers, the report said.
These adjustments have helped sustain exports and weakened Iran’s ability to disrupt regional oil flows.
The recovery in West Asian supplies has provided Indian refiners with alternatives to more expensive American cargoes.
High freight costs make US oil less attractive
Economics, rather than political pressure, remains the primary consideration in Indian refiners’ purchasing decisions, according to senior officials from state-run refiners cited by Business Standard. They said the government had not instructed refiners to source crude oil, LPG or LNG from any particular country, despite Washington’s calls for India to increase energy imports from the US.
High freight costs, longer transit times and limited availability of medium-sour crude grades have made American barrels less competitive against supplies from West Asia and Russia, the report said.
Shipments from the US can take more than 45 days to reach India, with vessels sometimes rerouting around the Cape of Good Hope to avoid security risks along the Suez Canal route amid Houthi attacks in the Red Sea.
These longer journeys add to transportation costs and reduce the commercial appeal of American supplies.
Meanwhile, the availability of medium-sour crude from West Asian producers has improved in recent weeks, offering refiners alternatives that may be more economical and better suited to their requirements.
US crude imports fall further in October
The decline in American supplies has continued into October. Crude oil imports from the US fell by around 30% to 91,000 barrels per day (bpd) in October compared with September, according to Kpler data cited by Business Standard.
The September decline comes despite Washington’s push for India to buy more American energy as part of efforts to strengthen bilateral trade ties.
Higher energy purchases have been among the issues raised by US President Donald Trump amid negotiations for an India-US trade agreement, as per Hindustan Times report.
Russian oil purchases add to trade uncertainty
India’s energy sourcing decisions are also unfolding against uncertainty over US trade and sanctions policy concerning Russian oil.
Last month, Trump signed the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 into law, authorising him to impose tariffs of up to 100% on countries, including India and China, that continue purchasing Russian oil and gas.
The potential tariffs threats adds another layer of uncertainty for Indian refiners.
Even as India explores alternative sources to diversify its energy basket, the Gulf is likely to remain central to its oil and gas procurement strategy.
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