India’s Crude Oil Import Bill Rises 47% to $15.4 Billion in September

India’s crude oil import bill surged 47% year-on-year to $15.4 billion in September 2026, as elevated international oil prices increased the cost of securing energy supplies. According to provisional data from the Petroleum Planning and Analysis Cell (PPAC), India imported 21.7 million tonnes of crude oil during the month, up approximately 7% from 20.3 million tonnes a year earlier.

The increase in spending was driven primarily by higher prices rather than a comparable rise in import volumes. The Indian crude basket averaged $116.09 per barrel in September, compared with $69.61 in September 2025. Renewed conflict-related supply disruptions in West Asia, risks to important shipping routes and higher transportation costs contributed to the pressure. The rising bill has implications for India’s trade balance, inflation, fuel costs and broader economic outlook.

Key Takeaways

• Import bill jumps 47%: India spent $15.4 billion on crude oil imports in September 2026.
• Import volumes rise more slowly: Crude imports increased approximately 7% year-on-year to 21.7 million tonnes.
• Oil prices climb sharply: The Indian crude basket averaged $116.09 per barrel, compared with $69.61 a year earlier.
• First-half spending increases: The crude import bill reached $90.6 billion during April–September 2026, up approximately 46.3%.
• Import dependence remains high: India continues to rely heavily on overseas crude supplies to meet domestic demand.
• Economic risks increase: Higher oil costs can pressure the trade balance, the rupee, inflation and government finances.

Why India’s Crude Oil Import Bill Increased

The main reason behind the higher import bill was the sharp increase in crude oil prices. India purchases crude from international markets, leaving its energy costs exposed to changes in global supply and demand.

In September 2025, the Indian crude basket averaged $69.61 per barrel. By September 2026, the average had risen to $116.09. This represented an increase of roughly 67%, substantially outpacing the 7% growth in the volume of crude imported.

The conflict in West Asia added to market uncertainty by disrupting traditional supply flows and raising concerns about the movement of oil tankers through critical maritime routes. The Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman, is particularly important for crude shipments from major Gulf producers.

When shipping routes become less reliable, buyers may face higher freight charges, insurance premiums and longer delivery times. These costs can increase the final price paid by Indian refiners even when crude remains available.

The September figures therefore illustrate how geopolitical developments can raise India’s energy bill without requiring a similarly large increase in physical oil consumption.

India’s September Crude Import Figures

The latest figures from PPAC show a clear gap between the growth in import volumes and the increase in spending.

Indicator	September 2025	September 2026	Change
Crude oil import bill	$10.5 billion	$15.4 billion	Approximately +47%
Crude import volume	20.3 million tonnes	21.7 million tonnes	Approximately +7%
Average Indian crude basket price	$69.61 per barrel	$116.09 per barrel	Approximately +67%
Crude import bill, April–September	$61.9 billion	$90.6 billion	Approximately +46.3%

Figures are based on provisional PPAC data reported by Indian media. Percentages are rounded.

The difference between price growth and volume growth is important. It indicates that the increase in spending was driven largely by the higher cost of each barrel, rather than a proportionate increase in the quantity purchased.

This distinction matters for economic analysis because reducing unnecessary consumption alone may not immediately offset the impact of a sharp global price increase. India can import similar quantities of crude and still face a substantially larger bill.

First Half of FY2026–27 Sees a $90.6 Billion Oil Bill

The pressure extended beyond September. During April–September 2026, India’s crude oil import bill increased approximately 46.3% to $90.6 billion, compared with $61.9 billion in the corresponding period a year earlier.

However, the volume imported during the six-month period remained broadly stable. India imported approximately 122.7 million tonnes of crude, compared with 121.8 million tonnes in April–September 2025.

The figures reinforce the role of prices in driving import expenditure. India’s spending increased significantly despite only a marginal rise in the quantity purchased.

Crude oil is one of India’s largest import categories. A sustained increase in its price can therefore affect the country’s overall import expenditure and place pressure on the current account, which measures transactions between India and the rest of the world.

The longer elevated prices persist, the more difficult it becomes to offset their impact through short-term adjustments in import volumes.

How Higher Oil Prices Affect the Indian Economy

Pressure on the trade balance

When India spends more on imported crude, its merchandise import bill rises. If exports and other external earnings do not increase sufficiently to compensate, the trade deficit can widen.

A larger trade deficit can contribute to pressure on the current account, although the final outcome also depends on exports, services earnings, remittances and other international transactions.

Imported inflation

Crude oil influences transportation, manufacturing, logistics and several industrial processes. Higher oil prices can increase costs for airlines, road transport operators, chemical manufacturers and other energy-intensive businesses.

Companies may absorb part of the increase or pass some of it on to consumers. The extent of the impact depends on domestic fuel pricing, taxes, government policy and the ability of businesses to absorb higher input costs.

Pressure on the rupee

Higher oil imports increase India’s demand for foreign currency, particularly US dollars. If dollar inflows do not keep pace, the rupee may face depreciation pressure.

A weaker rupee can make imported oil even more expensive in domestic currency terms. However, exchange rates are influenced by many factors, including global interest rates, foreign investment flows and broader market sentiment, so oil prices alone do not determine the rupee’s movement.

Government and household finances

Higher crude prices can complicate decisions about fuel taxation, subsidies and public spending. If domestic fuel prices rise, households and businesses may face additional costs. If prices are held down through tax adjustments or other measures, the impact may instead be reflected in government revenues or fiscal pressures.

What the Rising Bill Means for India’s Energy Security

India’s reliance on imported crude makes the country vulnerable to international price shocks and disruptions in major producing regions. Diversifying suppliers can reduce dependence on any single country, but it cannot fully insulate India from a global increase in oil prices.

The recent recovery in West Asian crude shipments demonstrates that refiners can adjust their sourcing when regional supplies become more accessible. Russian, Middle Eastern and other crude grades can offer different combinations of price, shipping time and refinery compatibility.

Nevertheless, the most attractive supplier can change as discounts, freight costs and geopolitical risks evolve. India’s energy security therefore depends not only on where oil comes from, but also on the reliability of shipping routes, the availability of reserves and the efficiency with which refineries and consumers use energy.

Over the longer term, improving energy efficiency and expanding alternative energy sources could reduce exposure to imported crude. These changes require time and investment, however, and do not remove the immediate impact of high oil prices on the economy.

The Bigger Picture

The September import figures reveal a central challenge for India’s energy strategy: the country can keep crude volumes relatively stable while still facing a major increase in expenditure when international prices rise. Geopolitical tensions and shipping disruptions can affect costs throughout the supply chain, making energy security an economic as well as a strategic concern.

For policymakers and businesses, the next question is whether elevated prices persist into the coming months. Continued pressure could increase India’s import expenditure and complicate efforts to manage inflation, external balances and domestic fuel costs. A sustained easing in crude prices and more reliable shipping conditions would provide relief, but the September data underscores how quickly global events can change the cost of securing India’s energy needs.

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 $10.5 billion in September 2025.

2. Why did the import bill rise faster than import volumes?

The average Indian crude basket price rose to $116.09 per barrel from $69.61 a year earlier. Import volumes increased by around 7%, while the much larger increase in prices pushed spending sharply higher.

3. How much did India spend on crude imports in the first half of FY2026–27?

India spent approximately $90.6 billion on crude oil imports between April and September 2026, up around 46.3% from $61.9 billion a year earlier.

4. How can higher crude prices affect Indian consumers?

Higher oil prices can increase transport and manufacturing costs, which may contribute to higher prices for goods and services. The direct impact on household fuel bills depends on domestic pricing decisions, taxes and government policy.

5. Can India avoid the impact of higher global oil prices?

India can reduce its exposure through supplier diversification, strategic petroleum reserves, energy efficiency and alternative energy sources. However, because the country relies heavily on imported crude, it remains vulnerable to sustained increases in global oil prices.

Looking Ahead

India’s crude import bill will depend on international oil prices, the stability of West Asian supply routes, shipping costs and the purchasing decisions of domestic refiners. If prices remain elevated, the country could continue facing significant import expenditure even if the volume of crude purchased changes only modestly. A sustained reduction in geopolitical risk and freight costs could help ease that pressure.

The broader challenge is to secure reliable energy supplies while limiting the economic consequences of external price shocks. Diversified sourcing can improve resilience, but reducing long-term vulnerability will also require better energy efficiency and gradual changes in the country’s energy mix. September’s figures underline how closely India’s import costs remain tied to developments in the global oil market.