India’s crude oil import bill climbed 47% year-on-year to $15.4 billion in September 2026, as elevated global energy prices increased the cost of securing supplies. Crude imports reached 21.7 million tonnes during the month, up 7% from 20.3 million tonnes a year earlier, according to data from the Petroleum Planning and Analysis Cell (PPAC).
The sharp rise in expenditure reflects the widening gap between the volume of oil India imports and the price it pays for each barrel. The Indian crude basket averaged $116.09 per barrel in September, compared with $69.61 in September 2025. Supply disruptions linked to the crisis in West Asia have increased energy costs, adding pressure to India’s import bill, trade balance and wider economic outlook.
Key Takeaways
- India’s crude oil import bill rose 47% to $15.4 billion in September 2026.
- Crude import volumes increased 7% to 21.7 million tonnes.
- The Indian crude basket averaged $116.09 per barrel, up from $69.61 a year earlier.
- The April–September crude import bill increased 46.4% to $90.6 billion.
- Russia remained India’s largest crude supplier, accounting for 35% of imports in September.
- India’s net oil and gas bill increased nearly 40% year-on-year to $13.4 billion in September.
Why India’s Crude Oil Import Bill Increased
The main driver of the higher import bill was the increase in international crude oil prices. India relies heavily on overseas supplies to meet its energy needs, so a sustained increase in the cost of each barrel can significantly raise the country’s import expenditure.
The Indian crude basket averaged $116.09 per barrel in September, approximately 67% higher than the $69.61 average recorded in September 2025. By comparison, the volume of crude imported increased by only 7%.
This difference shows why higher oil prices can have a substantial impact on India’s external finances even when the country does not dramatically increase its purchases.
| Indicator | September 2025 | September 2026 | Change |
|---|---|---|---|
| Crude oil import bill | $10.5 billion | $15.4 billion | About 47% |
| Crude import volume | 20.3 million tonnes | 21.7 million tonnes | About 7% |
| Average Indian crude basket | $69.61 per barrel | $116.09 per barrel | About 67% |
| Net oil and gas bill | — | $13.4 billion | Nearly 40% year-on-year increase |
Sources: PPAC data reported by Business Standard and The Times of India. Figures are rounded.
The higher bill does not mean India consumed 47% more crude oil. Instead, the data indicates that the increase in international prices was the dominant factor behind the rise in expenditure.
West Asia Crisis Adds to Energy Supply Risks
The rise in crude prices comes amid disruptions to energy flows through important maritime routes in and around West Asia.
The Strait of Hormuz is a critical passage for crude oil and other energy supplies moving out of the Persian Gulf. Disruptions to traffic through the strait, along with threats to shipping around Bab-el-Mandeb near the Red Sea, have raised concerns about the availability and cost of energy supplies.
When shipments are delayed or routes become more difficult to use, buyers may face higher freight charges, insurance costs and uncertainty over delivery schedules. Markets can also push prices higher in anticipation of potential shortages.
India has continued sourcing crude to maintain domestic availability. For a large energy-importing economy, the challenge is to secure sufficient supplies while managing the additional costs created by international market volatility.
If elevated prices persist, the impact could extend beyond the oil sector to transportation, manufacturing, inflation and government finances.
Russia Remains India’s Largest Crude Oil Supplier
Russia accounted for approximately 35% of India’s crude oil imports in September, according to data from maritime intelligence firm Kpler cited by Business Standard.
Iraq, Saudi Arabia, the United Arab Emirates and Kuwait were among the other leading suppliers. Together, the five largest suppliers accounted for around 70% of India’s crude imports during the month.
| Supplier | Position in September 2026 |
|---|---|
| Russia | Largest supplier, accounting for about 35% |
| Iraq | Among India’s five largest suppliers |
| Saudi Arabia | Among India’s five largest suppliers |
| United Arab Emirates | Among India’s five largest suppliers |
| Kuwait | Among India’s five largest suppliers |
The supplier mix matters because India must balance price, crude quality, refinery requirements, shipping costs and geopolitical considerations when purchasing oil.
A diversified supplier base can offer flexibility, but it cannot fully protect the country from a broad increase in international crude prices. If supplies from a major producing region become harder to obtain, refiners may have to compete for alternative cargoes or accept higher transportation costs.
India’s Oil Import Bill Reaches $90.6 Billion in Six Months
The September increase forms part of a broader rise in energy expenditure during the first half of the 2026–27 financial year.
India’s crude oil import bill rose 46.4% to $90.6 billion between April and September 2026. Import volumes during the six-month period stood at 122.7 million tonnes, compared with 121.8 million tonnes in the corresponding period a year earlier.
The difference between the modest increase in volume and the substantial rise in spending reinforces the importance of global prices to India’s energy finances.
The country’s net oil and gas bill, which accounts for imports of crude oil and other petroleum products, LNG and LPG, less earnings from refined petroleum exports, also increased. It rose 35% to $81.1 billion during April–September.
These figures matter because India’s energy imports account for a substantial portion of its overall import expenditure. When oil becomes more expensive, the country must spend more foreign currency to obtain broadly similar quantities of energy.
What Higher Oil Prices Mean for Inflation and the Economy
Higher crude prices can affect the Indian economy through several channels.
Fuel and transportation costs
Crude oil is a major input for petrol, diesel and other petroleum products. Higher international prices can increase the cost of producing and importing fuels. The extent to which consumers see these costs reflected in retail prices depends on domestic pricing decisions, taxes, subsidies and the policies of oil companies.
Manufacturing and logistics
Businesses that depend on transportation, petrochemicals, plastics and other petroleum-based inputs may face higher operating costs. Companies can absorb these increases, pass them on to customers or adjust production and investment plans.
Inflation and household spending
If higher energy costs feed into transportation, food distribution and manufactured goods, they can put upward pressure on inflation. Households may then have less money available for discretionary spending.
The rupee and external balances
India generally pays for crude oil in US dollars. A higher oil import bill can increase demand for foreign currency and put pressure on the country’s trade balance. Currency movements can further affect the rupee cost of imported oil, although the actual impact depends on exchange rates and other financial flows.
The Bigger Picture
India’s rising crude oil import bill highlights the economic risks associated with dependence on imported energy. Even when import volumes remain relatively stable, a sharp increase in international prices can substantially raise expenditure, affect the trade deficit and increase costs across the economy.
The figures also demonstrate why energy security involves more than finding enough oil. India must manage supplier relationships, transport routes, refinery requirements and price volatility while expanding alternative energy sources and improving efficiency. Diversification can reduce some supply risks, but it cannot eliminate exposure to global price shocks.
FAQs
1. How much did India’s crude oil import bill rise in September 2026?
India’s crude oil import bill increased approximately 47% year-on-year to $15.4 billion in September 2026, compared with around $10.5 billion in September 2025.
2. Why did the import bill rise so sharply?
The main reason was higher international crude oil prices. The Indian crude basket averaged $116.09 per barrel in September 2026, compared with $69.61 a year earlier. Import volumes increased by only 7%.
3. How much crude oil did India import in September?
India imported 21.7 million tonnes of crude oil in September 2026, up from 20.3 million tonnes in September 2025.
4. Which country supplied the most crude oil to India?
Russia remained India’s largest crude oil supplier in September 2026, accounting for approximately 35% of total imports, according to Kpler data cited by Business Standard.
5. How much did India spend on crude oil imports in the first half of FY2026–27?
India’s crude oil import bill reached $90.6 billion during April–September 2026, an increase of 46.4% compared with the same period a year earlier.
Looking Ahead
India’s oil import expenditure will remain sensitive to international crude prices, shipping conditions and developments affecting energy supplies from West Asia. If prices remain elevated, the country could face continued pressure on its trade balance and energy costs, even without a major increase in import volumes.
The next key indicators will be the monthly Indian crude basket price, import volumes, the supplier mix and the net oil and gas bill. A sustained decline in crude prices could ease the pressure, while further supply disruptions could push costs higher. For India, maintaining reliable energy supplies while limiting the economic impact of price volatility will remain a central policy challenge.
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