- India’s crude import bill surged $29 billion in H1 FY27.
- Higher international prices, not volumes, drove this increase.
- West Asia conflict pushed early Q1 crude costs higher.
India’s crude oil import bill rose by nearly $29 billion in the first half of FY27, even though the quantity purchased from overseas suppliers barely changed. The sharp increase reflects the impact of higher international oil prices, with the West Asia conflict driving costs up during the early months of the financial year, according to data from the Petroleum Planning and Analysis Cell (PPAC).
Between April and September, India spent $90.6 billion on crude imports, compared with $61.9 billion in the same period last year. Imports totalled 122.7 million tonnes, an increase of less than 1% year-on-year, reported Financial Express.
The expenditure amounted to Rs 8.53 lakh crore in six months, already accounting for around 72% of the $125.8 billion crude import bill recorded for the whole of FY26.
West Asia Conflict Pushes Up First-Quarter Costs
The impact of higher oil prices was most pronounced in April-June. During the first quarter of FY27, India’s crude import bill surged 61% year-on-year to $49.8 billion, although the volume imported fell to 59.8 million tonnes.
Costs eased in the following quarter as international prices moderated. India’s crude import expenditure is estimated at around $40.8 billion in July-September, about $9 billion lower than in the preceding three months. Imports, however, rose to approximately 62.9 million tonnes.
The shift meant India brought in more crude during the second quarter while spending less than it had in the first, highlighting how price movements shaped the import bill.
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September Oil Prices Reverse Some Of The Relief
The moderation did not last through the end of the quarter. In September, India imported 21.7 million tonnes of crude, up 6.6% from a year earlier, but the bill rose to $15.4 billion from $10.5 billion.
The Indian crude basket averaged $116.09 per barrel during the month, compared with $69.61 in September 2025. Brent crude prices also climbed, averaging $116.77 per barrel against $68.02 a year earlier.
The increase in September costs came as petroleum consumption in India moved in the opposite direction. Domestic consumption of petroleum products fell 3.3% year-on-year to 114.8 million tonnes during April-September, PPAC data showed.
Import Dependence Leaves India Exposed To Price Swings
India’s reliance on overseas crude supplies remains high. Import dependence stood at 88.1% during the first half of FY27, while domestic crude production declined to 13.7 million tonnes from 14.2 million tonnes in the corresponding period last year.
This dependence makes the country’s energy expenditure sensitive to international price changes, even when import volumes remain broadly stable.
Oil And Gas Bill Adds To External Account Pressure
The higher crude costs extended beyond the oil import bill. India’s net oil and gas import bill increased to $81.1 billion in April-September, up from $60.2 billion a year earlier.
Petroleum imports also formed a larger share of the country’s merchandise imports, accounting for 22.7% by value compared with 19.5% in the year-ago period.
The pressure was already reflected in the current account figures for the first quarter. India’s current account deficit widened to $4.2 billion, equivalent to 0.5% of GDP, in Q1 FY27, from $3.4 billion a year earlier.
The data show how the rise in global energy prices has increased India’s import costs and added to pressure on its external balance, despite only a marginal increase in the volume of crude purchased.
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Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
