India spent an additional $24.4 billion on crude oil imports during April-August despite volumes remaining almost unchanged. Higher global crude prices and a weaker rupee sharply increased the country’s energy import burden.
Highlights
- India’s crude oil import bill surged 48.4% YoY to $74.8 billion during April-August.
- The country spent an additional $24.4 billion compared with $50.4 billion a year earlier.
- Import volumes remained nearly flat, slipping 0.4% to 100.7 million metric tonnes (MMT).
- The Indian crude basket averaged $90.19 per barrel in August, up 30.5% YoY.
India’s Crude Oil Import Bill Surges 48.4% as Prices Rise
India’s crude oil import bill jumped sharply during the first five months of the current financial year as elevated global oil prices and a weaker rupee increased the cost of overseas purchases, even though import volumes remained broadly unchanged.
According to data cited in the report, India spent $74.8 billion on crude oil imports during April-August, up 48.4% from $50.4 billion in the same period a year earlier. This means the country incurred an additional expenditure of around $24.4 billion on crude imports.
The sharp increase was largely price-driven. In volume terms, crude oil imports declined marginally by 0.4% to 100.7 MMT, according to data from the Petroleum Planning and Analysis Cell (PPAC).
The Indian crude basket averaged $90.19 per barrel in August, representing an increase of 30.5% from a year earlier. This rise in crude prices has significantly increased the financial burden of imports.
India remains heavily dependent on overseas crude supplies, with its crude oil import dependence staying above 88%. This leaves the economy vulnerable to prolonged increases in international oil prices and disruptions in global energy markets.
The impact is also visible in the broader energy trade account. The report said the net oil and gas import bill increased 35% to $66.8 billion during April-August. The current account deficit widened to $4.2 billion, or 0.5% of GDP, in Q1 FY27, as the goods trade deficit increased.
Currency depreciation has added another layer of pressure. The rupee weakened 8.7% in the year to August 31, making dollar-denominated crude oil more expensive for Indian buyers.
Import expenditure in rupee terms jumped to a little over ₹7 lakh crore during April-August, an increase of 62% year-on-year.
With crude prices remaining elevated, India’s energy import costs and current account position could remain sensitive to movements in international oil markets and the rupee.
