New Delhi: India’s crude oil import bill surged 56.5 percent to $63.4 billion during April-July 2026, from $40.5 billion in the same period last year, as higher international oil prices increased the cost of imports even as crude import volumes remained broadly unchanged.
Data from the Petroleum Planning and Analysis Cell’s (PPAC) Monthly Ready Reckoner, released Wednesday, showed that India imported 81.9 million metric tonnes (MMT) of crude during the first four months of the financial year, broadly in line with the 81.5 MMT imported in the corresponding period last year.
PPAC’s Monthly Ready Reckoner tracks India’s crude oil and petroleum product production, imports, consumption, refining and trade.
The sharp rise in the import bill was therefore largely driven by higher crude prices, particularly during the initial months of the financial year when the West Asia conflict disrupted oil supplies and raised concerns over further disruptions.
The impact was also visible in July, when India’s crude import bill stood at $13.7 billion, 41 percent higher than the $9.7 billion recorded in July 2025.
The Indian crude basket averaged $82.04 per barrel in July, compared with $70.95 per barrel a year earlier.
Prices, however, were significantly higher earlier in the financial year, averaging $114.48 per barrel in April and $106.23 per barrel in May, according to PPAC data.
While prices eased in June and July as oil supplies recovered and concerns over disruptions to the Strait of Hormuz eased amid talks of a possible US-Iran peace deal, renewed tensions between Washington and Tehran have pushed Brent crude back above $90 a barrel in August, raising concerns over another increase in India’s oil import costs. The Indian crude basket had already averaged $88.94 per barrel as of 18 August, according to PPAC, higher than the June and July averages.
India’s vulnerability to international crude prices is also linked to its heavy dependence on imports. The country imports nearly 85 percent of its crude requirement, while sourcing oil from around 40 countries.
“If Brent remains above $90 per barrel, the first impact will be a higher oil-import bill, stronger demand for dollars from refiners, and additional pressure on the rupee,” said Umud Shokri, an energy expert and senior visiting fellow at George Mason University in the US.
He added that higher crude prices could also raise costs for airlines, road transport, logistics, petrochemicals and other energy-intensive industries, with wholesale inflation likely to respond faster than consumer inflation.
India’s vulnerability is compounded by subdued domestic production. PPAC data showed crude oil production fell to 9.1 MMT during April-July 2026, from 9.7 MMT in the corresponding period last year.
Lower domestic output means a larger share of India’s oil requirement has to be met through imports, leaving the economy more exposed to global crude prices.
Higher crude prices can also widen India’s current account deficit and add to inflation, particularly if oil remains expensive for a prolonged period.
(Edited by Amrtansh Arora)
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