India’s crude oil import bill has surged sharply during the first five months of the current financial year, with the country spending $74.8 billion between April and August.
The increase comes despite crude import volumes remaining almost unchanged, highlighting the impact of rising international oil prices and growing supply concerns in global energy markets.
Import Bill Rises $24.4 Billion
India’s crude oil import expenditure increased by 48.4% compared with the same period last year.
The country had spent around $50.4 billion on crude imports during April-August 2025. This means India’s spending increased by approximately $24.4 billion in just one year.
In rupee terms, the import cost rose by around 62% to more than Rs 7 lakh crore.
Crude Import Volumes Barely Changed
The sharp increase in expenditure was not caused by India importing significantly more oil.
India imported around 100.7 million tonnes of crude between April and August, compared with 101.1 million tonnes during the corresponding period last year.
That represents a marginal decline of 0.4%.
The figures indicate that higher crude prices, rather than increased import volumes, were primarily responsible for the jump in India’s oil bill.
Indian Crude Basket Crosses $120
The cost of crude purchased by Indian refiners has risen significantly in recent months.
The Indian crude basket averaged $90.19 per barrel in August, compared with $69.11 per barrel during August last year.
The situation worsened in September. The Indian crude basket climbed to $123.86 per barrel on September 18, compared with $99.35 per barrel on September 2.
International Brent crude has also remained elevated amid continuing concerns over oil supplies.
West Asia Conflict Adds To Supply Risks
Geopolitical tensions in West Asia have become a major factor behind the rise in crude prices.
Disruptions to oil flows from the Middle East and uncertainty surrounding shipments through the Strait of Hormuz have increased concerns about global supplies.
The Strait is one of the world’s most important routes for crude and energy shipments, making any disruption particularly significant for countries such as India that depend heavily on imported oil.
India Remains Highly Dependent On Imported Oil
India’s dependence on imported crude remains very high.
During April-August, around 88.1% of India’s crude oil requirements were met through imports, only slightly lower than 88.3% during the same period last year.
At the same time, domestic crude production declined to around 11.4 million tonnes from 11.9 million tonnes.
This leaves India’s energy costs particularly sensitive to movements in international crude prices.
Trade Deficit Faces Additional Pressure
Higher oil costs are also affecting India’s broader trade position.
Petroleum imports accounted for around 22.5% of India’s total merchandise imports during April-August, compared with 19.5% a year earlier.
The merchandise trade deficit widened to $147.1 billion during the period, compared with $123.9 billion a year earlier.
If crude prices remain elevated for an extended period, India’s external balance could face additional pressure.
Higher Oil Prices Could Affect Consumers
So far, the increase in global crude prices has not been fully reflected in domestic fuel prices.
However, a prolonged period of expensive crude could increase pressure on fuel retailers and downstream industries to pass some of the additional costs through to consumers.
Higher energy costs can also affect transportation, manufacturing and other sectors that depend heavily on petroleum products.
Summary
India’s crude oil import bill jumped 48.4% to $74.8 billion between April and August, even though import volumes fell marginally by 0.4%. Rising global crude prices were the main reason for the increase. India’s high import dependence, elevated September crude prices and continuing geopolitical risks could keep pressure on the country’s trade balance and energy costs.
