India’s Crude Import Bill Climbs 48% to $74.8 Billion

India’s crude oil import bill rose 48.4% to $74.8 billion in April-August, as higher prices drove up costs despite a slight drop in volumes. The country spent $24.4 billion more than in the same five months a year earlier, Petroleum Planning and Analysis Cell data showed.

India imported 100.7 million metric tonnes of crude, down 0.4% from 101.1 million tonnes a year earlier. That near-flat volume makes the price surge the main driver of the larger bill.

The increase comes amid supply concerns linked to conflict in West Asia and uneven oil flows from the region. The Indian crude basket, a measure of oil grades bought by Indian refiners, climbed to $123.86 a barrel on September 18 from $99.35 on September 2, according to PPAC data cited by Business Standard.

India remains highly exposed to global prices because it imports most of the crude it uses. Its import dependence was 88.1% in April-August, while domestic production fell to 11.4 million tonnes from 11.9 million a year earlier.

The higher oil bill is also taking up more space in the country’s import mix. Petroleum accounted for 22.5% of merchandise imports in April-August, up from 19.5% a year earlier, while the merchandise trade deficit widened to $147.1 billion from $123.9 billion.

That can add pressure to India’s external accounts if elevated crude prices persist. The current account deficit was $4.2 billion, or 0.5% of GDP, in the first quarter of fiscal 2026-27, compared with $3.4 billion, or 0.4% of GDP, a year earlier.

The next test is whether September’s higher crude prices hold. PPAC’s September basket data and upcoming import figures will show how much of the price jump carries into the next monthly bill.