India’s crude oil import bill has shot up 46.3 per cent to $90.6 billion in the April-September period of the current financial year, government data shows. The spike is not because the country bought more oil. Volumes barely moved. It is because the oil India bought cost far more.
The country imported 122.7 million tonnes of crude in the six months, only a touch higher than the 121.8 million tonnes bought in the same period last year, according to the Petroleum Planning and Analysis Cell (PPAC). Yet the bill jumped from $61.9 billion to $90.6 billion, a difference of nearly $29 billion in just six months.
September tells the story
September was the roughest month. India spent $15.4 billion on crude imports, up 46.6 per cent from a year earlier, while volumes rose only 6.8 per cent to 21.7 million tonnes. The culprit is the price per barrel.
The Indian crude basket averaged $116.09 a barrel in September, compared with $69.61 a year earlier and $90.19 in August 2026. At one point in the month, on September 15, it touched a monthly peak of $130.19 a barrel. Brent, the global benchmark, averaged $116.77 a barrel in September, nearly double the $68.02 it averaged in September 2025.
The pressure has not eased in October. The Indian basket has averaged $121.25 a barrel so far this month against $65.08 in the year-ago period, while Brent was trading near $110 a barrel on October 21.
Why prices surged
Markets are pricing in a real risk of supply disruption across West Asia. Analysts point to a cluster of overlapping threats:
- Renewed hostilities between the US and Iran around the Strait of Hormuz, through which a fifth of the world’s oil flows.
- A fresh wave of attacks by Houthi rebels on Saudi Arabian energy infrastructure.
- Continued Red Sea shipping risks that keep insurance and freight costs elevated.
- Reversal of the brief price dip that followed the peak of the West Asia conflict earlier this year.
“The risks of supply disruption could remain the main obsession” for markets, overriding optimism from any temporary measures like inventory releases, Samer Hasn, senior market analyst at XS.com, said.
Dependence has barely budged
India’s crude import dependence stood at 88.1 per cent of consumption during April-September, broadly unchanged from 88.3 per cent a year earlier. Meanwhile, domestic production weakened: India produced 13.7 million tonnes of crude and condensate in the half-year, down from 14.2 million tonnes in the corresponding period last year.
Lower domestic output means a bigger share of demand must be met from imports, magnifying the impact of every dollar movement in global crude prices.
What it means for the economy
In rupee terms, the six-month crude bill works out to roughly Rs 8.53 lakh crore. The import bill is a gross purchase figure, not the net trade deficit: India refines much of this crude and exports refined products back out. But the price pressure still shows up on the broader energy account.
The net oil and gas import bill rose 40 per cent year on year to $13.4 billion in September from $9.6 billion. For the full first half of 2026-27, the net bill increased 35 per cent to $81.1 billion from $60.2 billion in the same period of 2025-26.
The bigger risk, analysts say, is not availability of crude but persistently higher landed prices. A heavier import bill widens the current account deficit, feeds fuel inflation, and leaves less fiscal room for the government at a time when the RBI has already flagged energy prices as a concern for inflation.
Silver lining in LNG
One pocket of stability: the LNG import bill stayed unchanged at $1.2 billion in September compared with a year earlier, even as volumes fell 8.5 per cent to 2,957 million standard cubic metres. Gas, at least, is not adding to the pressure.
For now, everything hinges on West Asia. If tensions cool and shipping lanes stabilise, the second half of the fiscal year could bring relief. If they escalate, the $90.6 billion figure may look like the better half of the year.
FAQs
How much was India’s crude import bill in April-September 2026?
India’s crude oil import bill stood at $90.6 billion for April-September 2026, up 46.3 per cent from $61.9 billion in the same period last year, as per PPAC data.
Why did the import bill rise if import volumes were flat?
The jump was price-driven. Volumes rose just 0.7 per cent to 122.7 million tonnes, while the Indian crude basket averaged $116.09 a barrel in September against $69.61 a year earlier.
What is India’s dependence on imported crude?
India meets more than 85 per cent of its oil needs through imports. Import dependence was 88.1 per cent on a consumption basis during April-September 2026.
How do high oil prices affect the Indian economy?
A bigger crude bill widens the current account deficit, pressures the rupee, and can feed fuel inflation, which the RBI is already watching closely.
What is the PPAC?
The Petroleum Planning and Analysis Cell is the statistical agency under the Ministry of Petroleum and Natural Gas that compiles India’s official oil and gas import data.
That’s the wrap. We’ll keep tracking crude prices and what they mean for your wallet.
