India's Crude Oil Import Bill Rises 48% to $74.8 Billion Amid Higher Global Prices

The country's expenditure on crude oil imports rose 48%, reaching $74.8 billion across the April-to-August period. The rise in prices was driven primarily by elevated international commodity costs, with import volumes holding relatively stable throughout the period. According to figures released by the Petroleum Planning and Analysis Cell (PPAC), crude oil purchases by India totalled 100.7 million tons across the April-to-August period, a marginal decline from the 101.1 million tons recorded during the corresponding months of the previous year. India's petroleum import expenditure climbed 18 percent to $11.7 billion that August, even as purchase volumes fell by 3 percent to 19 million tonnes. The Indian crude basket's mean price climbed to $90.19 per barrel in August, up from $69.1 a barrel the previous year. Brent crude held above the $100 threshold for more than 18 consecutive days, settling near $102 per barrel on 21 September — a 2% decline from the prior session — as tensions across West Asia continued to weigh on markets. Crisil Intelligence has updated its Brent crude outlook for the current fiscal year to a range of $88–93 per barrel, reflecting a year-on-year rise of between 25% and 32%. The adjustment follows a drawdown in stockpiles alongside ongoing unrest across the Middle East region. According to Crisil Intelligence, higher energy costs tend to filter through to the wider economy, with manufacturers and suppliers showing a growing capacity to transfer increased fuel and raw material expenses to end buyers when demand conditions remain strong. Growing friction between the United States and Iran over the Strait of Hormuz, a vital petroleum shipping lane, along with Houthi strikes on Saudi Arabian territory, has contributed to a rise in oil prices. India's crude oil basket averaged $113.9 per barrel in September, up from $69.61 a barrel in the same period the previous year. Ranked among the top three petroleum-importing nations globally, the country sources more than 85% of its crude oil requirements from overseas suppliers. Sustained elevation in crude oil import prices has drawn attention from market watchers, who note that a prolonged trend at these levels could drive up the overall import expenditure, expand the current account gap, and place downward pressure on the broader Indian economy. Annual crude oil purchases total roughly 1.8 to 2 billion barrels, meaning each one-dollar rise in the per-barrel price translates to an additional two billion dollars in yearly expenditure. Analysts estimate that a prolonged conflict in West Asia could push India's average crude basket price beyond $90 per barrel during FY27. Officials had previously informed a prominent broadcaster that international prices were expected to settle within the $80–85 range. S&P Global Energy forecasts that crude oil prices will hold within the $80–$100 band through 2027, with Brent projected to average around $90 or above for the rest of 2026 and $86 in 2027, a figure $5 above the firm's prior forecast.

India's Crude Oil Import Bill Rises 48% to $74.8 Billion Amid Higher Global Prices

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India's Crude Oil Import Bill Rises 48% to $74.8 Billion Amid Higher Global Prices

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