India’s Crude Import Bill Rises 41% To $13.7 Billion In July

India’s crude oil import bill rose 41 per cent year-on-year to $13.7 billion in July, as higher international crude prices and increased import volumes pushed up the country’s energy costs. According to data from the Petroleum Planning and Analysis Cell (PPAC), crude imports increased 13 per cent to 21.4 million tonnes (mt) in July from 18.9 mt a year earlier, while the Indian crude basket averaged $82.04 a barrel, compared with $70.95 a barrel in July 2025.

The increase comes amid supply disruptions linked to the ongoing West Asia crisis, including disruption to shipping through key routes such as the Strait of Hormuz and threats around the Bab-el-Mandeb. Crude oil remains India’s largest import item, accounting for around 20 per cent of the country’s merchandise import bill, making a sustained rise in oil prices a significant risk for India’s trade balance, inflation, currency and corporate costs.

India’s July Crude Import Bill Jumps 41%

The $13.7 billion crude import bill represents a substantial increase from the year-earlier period. While import volumes rose by about 13 per cent, the value of imports increased by 41 per cent, highlighting the role played by higher crude prices.

The Indian basket, which reflects the average price of crude imported by India, rose from $70.95 a barrel in July 2025 to $82.04 a barrel in July 2026. That is an increase of about $11.09 a barrel, or roughly 15.6 per cent.

The difference between the increase in import volumes and the much sharper increase in the import bill shows that price inflation was the dominant factor behind the rise in India’s crude expenditure.

July Crude Oil Data At A Glance

Indicator	July 2025	July 2026	Change
Crude import volume	18.9 mt	21.4 mt	+13%
Indian crude basket	$70.95/barrel	$82.04/barrel	+15.6%
Crude import bill	—	$13.7 bn	+41% YoY
LNG imports	—	$1.2 bn	—
Petroleum product exports	—	$5 bn	+8.3% YoY
Net oil and gas bill	—	$11.2 bn	+19% YoY

The PPAC data shows that India is simultaneously importing more crude and paying substantially more for each barrel, creating a double pressure on the country’s energy import costs.

Price Rise Is The Main Driver

The 41 per cent rise in the crude import bill was considerably larger than the 13 per cent increase in physical imports. This means the increase cannot be explained by volumes alone.

The Indian crude basket’s average price increased by around 15.6 per cent year-on-year. In addition to the higher average price, the larger volume of crude purchased contributed to the overall increase in the dollar value of imports.

Crude Import Bill Vs Import Volume

JULY 2026 — YEAR-ON-YEAR CHANGE

Crude Import Bill       +41%  █████████████████████
Crude Import Volume     +13%  ███████
Indian Crude Basket   +15.6%  ████████

The comparison is important because it demonstrates how international oil prices can quickly affect India’s external finances even when the increase in physical demand is relatively moderate.

West Asia Crisis Adds To India’s Energy Costs

The latest increase comes against a backdrop of heightened disruption in global energy markets.

According to PPAC data cited in the report, supply disruptions have been linked to the blockage of traffic through the Strait of Hormuz and threats to the Bab-el-Mandeb shipping route. Both are strategically important routes for global energy trade.

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and is a major route for crude oil and other energy shipments. Disruption in the region can therefore affect not only oil prices but also freight costs, insurance premiums and delivery schedules.

For an import-dependent economy such as India, such disruptions can quickly translate into a larger foreign-exchange requirement.

Why Higher Oil Prices Matter For India

Area	Potential Impact
Trade balance	Higher crude payments widen the import bill
Current account	Greater foreign-currency outflow can increase pressure
Rupee	Higher dollar demand can weigh on the currency
Inflation	Costlier energy can raise transportation and production costs
Fiscal position	Fuel-related government support can become more expensive
Businesses	Higher energy and logistics costs can squeeze margins
Consumers	Petrol, diesel and other energy costs can affect household spending

India’s exposure is particularly significant because crude remains the country’s largest merchandise import item, accounting for around one-fifth of the merchandise import bill.

Russia Remains India’s Largest Crude Supplier

Despite geopolitical and trade pressures, Russia remained India’s largest crude oil supplier in July, accounting for 55.5 per cent of total crude imports, according to maritime intelligence firm Kpler.

The concentration is significant because India’s crude sourcing strategy has increasingly relied on a relatively small group of major suppliers.

The top five suppliers — Russia, the United Arab Emirates, Saudi Arabia, Venezuela and Brazil — together accounted for more than 80 per cent of India’s crude imports during July.

India’s Top Crude Suppliers In July

Rank	Supplier	Share Of India’s Crude Imports
1	Russia	55.5%
2	UAE	Part of top-five group
3	Saudi Arabia	Part of top-five group
4	Venezuela	Part of top-five group
5	Brazil	Part of top-five group
Top 5 combined	Five suppliers	More than 80%

The figures underline the importance of supplier diversification, particularly when geopolitical events can affect shipping routes, crude discounts and freight costs.

India’s Net Oil And Gas Bill Rises 19%

The impact of higher crude prices was partly offset by India’s earnings from refined petroleum exports.

India’s net oil and gas import bill rose 19 per cent year-on-year to $11.2 billion in July. This measure includes spending on crude, petroleum products, LNG and LPG imports after accounting for earnings from refined petroleum exports.

Crude oil accounted for $13.7 billion of the gross import bill, while LNG imports were valued at $1.2 billion. At the same time, petroleum product exports generated $5 billion in revenue during July.

India’s July Energy Trade

GROSS CRUDE IMPORTS          $13.7 bn
LNG IMPORTS                   $1.2 bn
                              ───────
PETROLEUM EXPORTS             $5.0 bn
                              ───────
NET OIL & GAS BILL           $11.2 bn

Petroleum product exports increased 8.3 per cent year-on-year during July despite the government’s decision to impose an excise duty on petrol, diesel and aviation turbine fuel exports after the West Asia crisis began. The policy was intended to discourage overseas shipments and prioritise domestic fuel availability amid supply constraints.

Crude Import Bill Surges 56.5% In April-July

The pressure on India’s oil import bill is not limited to July.

During the first four months of financial year 2026-27, India’s crude oil import bill increased 56.5 per cent year-on-year to $63.4 billion. The net oil and gas import bill rose 40.3 per cent to $57.8 billion during the same period.

FY27 Oil Import Trend

Period	Crude Import Bill	Change
July 2026	$13.7 bn	+41% YoY
April-July FY27	$63.4 bn	+56.5% YoY
July net oil & gas bill	$11.2 bn	+19% YoY
April-July net oil & gas bill	$57.8 bn	+40.3% YoY

The April-July numbers suggest that higher energy costs are becoming a broader feature of India’s external trade position rather than a one-month development.

What Higher Crude Prices Mean For The Indian Economy

A sustained rise in crude prices can affect India through several channels.

The first is the trade balance. Higher oil prices mean India needs more dollars to purchase the same quantity of crude, increasing the merchandise import bill.

The second is inflation. Fuel and transportation costs feed into the prices of goods and services throughout the economy. Even when domestic retail fuel prices do not immediately change, higher energy costs can affect freight, manufacturing and logistics expenses.

The third is the rupee. A larger dollar requirement for oil imports can create additional demand for the U.S. currency. If other capital inflows do not offset the demand, the rupee can face depreciation pressure.

Economic Transmission

Higher Global Oil Prices
          ↓
Higher Indian Crude Import Cost
          ↓
Larger Dollar Outflow
          ↓
Trade & Current Account Pressure
          ↓
Potential Rupee Pressure
          ↓
Higher Input & Transport Costs
          ↓
Inflation Risk

This makes crude prices one of the most important external variables for India’s economic outlook.

Refiners And Oil Companies Face A Mixed Impact

Indian refiners face a complicated environment when crude prices rise sharply.

Higher crude prices increase the cost of their primary input. However, refiners can benefit when global fuel prices and refining margins rise alongside crude prices.

India’s position as a major refining hub also provides some protection because the country exports significant volumes of refined petroleum products. The $5 billion in petroleum product export earnings in July helped reduce the net foreign-exchange burden from energy imports.

However, the balance depends on refining margins, domestic fuel prices, export demand and the government’s policy decisions.

The Bigger Picture

India’s July crude import figures show how quickly geopolitical disruptions can translate into higher external costs for one of the world’s largest oil-consuming economies. The crude import bill climbed 41 per cent to $13.7 billion even though import volumes increased by only 13 per cent, with the Indian crude basket rising from $70.95 to $82.04 a barrel.

The larger concern is that the pressure has persisted across the financial year. The April-July crude import bill has already risen 56.5 per cent to $63.4 billion, while India’s net oil and gas bill has increased 40.3 per cent to $57.8 billion. Refining exports provide an important cushion, but a prolonged period of elevated crude prices could continue to weigh on India’s trade balance, inflation and the rupee.

Looking Ahead

The trajectory of global crude prices and the duration of supply disruptions in West Asia will be the key variables for India’s energy import costs in the coming months. If shipping disruptions persist or crude prices remain elevated, India’s monthly import bills could stay significantly above last year’s levels. The government and oil companies will therefore need to balance domestic fuel availability, refining economics and export policies while managing the impact of higher global prices.

India’s diversified crude sourcing strategy, strong refining capacity and petroleum-product exports provide some protection against external energy shocks. However, with nearly nine-tenths of crude consumption dependent on imports according to provisional PPAC data, the economy remains highly exposed to international oil prices. A sustained fall in crude prices would provide relief to the trade balance and inflation outlook, while another sharp price spike could intensify pressure across the economy.