India’s crude oil import bill rose 48.4 per cent year-on-year to $74.8 billion in April-August. Higher international prices drove the increase despite import volumes remaining nearly the same, according to data from the Petroleum Planning and Analysis Cell (PPAC).

The country spent $24.4 billion more on crude during the first five months of FY27 than in the corresponding period a year earlier. Crude imports fell marginally by 0.4 per cent to 100.7 million metric tonnes (MMT) from 101.1 MMT a year earlier. In rupee terms, the import expenditure rose 62 per cent to a little over ₹7 trillion.

Crude prices drive import bill higher
The Indian crude basket averaged $90.19 a barrel in August, 30.5 per cent higher than $69.11 a barrel in August 2025 and 9.9 per cent above the July average of $82.04, PPAC data showed. Brent averaged $90.84 a barrel in August, compared with $68.21 a year earlier.

The recent rise in crude prices has been fuelled by concerns over supply disruptions amid the ongoing West Asia conflict. Attacks on Saudi Arabia’s East-West pipeline have disrupted shipments through the Red Sea, while tensions around the Strait of Hormuz have raised concerns over the availability and movement of Gulf crude.

The International Energy Agency (IEA) said on September 18 that renewed hostilities had caused further disruptions to regional oil exports and warned that prolonged supply constraints could put additional pressure on prices.

September prices add to pressure
The rise in prices has also accelerated in September. The Indian crude basket climbed to $123.86 a barrel on September 18, from $99.35 on September 2, according to PPAC data. India’s crude import dependence remained high at 88.1 per cent during April-August, only marginally lower than 88.3 per cent a year earlier. Domestic crude production fell to 11.4 MMT from 11.9 MMT.

Higher crude prices are also increasing the overall energy import bill. India’s net oil and gas import bill rose 34.7 per cent to $66.8 billion during April-August from $49.6 billion a year earlier. Gross petroleum imports, including crude and petroleum products, rose 36.8 per cent to $81.8 billion.

Wider trade and current account impact
Petroleum imports accounted for 22.5 per cent of India’s total merchandise imports during April-August, up from 19.5 per cent a year earlier. The merchandise trade deficit widened to $147.1 billion from $123.9 billion during the period.
The higher energy bill could put further pressure on India’s external balance if elevated crude prices persist. The current account deficit stood at $4.2 billion, or 0.5 per cent of GDP, in the first quarter of FY27, compared with $3.4 billion, or 0.4 per cent of GDP, a year earlier.

Source: Business Standard.