India's Crude Oil Import Bill Jumps 57% To $63.4 Billion

India's crude oil import bill increased by nearly 57% year-on-year to $63.4 billion during the first four months of FY27, despite the quantity of crude purchased from overseas remaining largely stable. The sharp increase highlights the impact of higher international oil prices on India's energy import costs.

According to a report citing data from the Petroleum Planning and Analysis Cell (PPAC), crude imports increased only 0.5% to 81.9 million tonnes (MT) during April-July of FY27, compared with 81.5 MT in the same period a year earlier. In rupee terms, the import bill stood at around ₹5.94 lakh crore.

The increase in the oil bill reflects elevated crude prices rather than a major rise in import volumes. India's crude basket averaged $82.04 per barrel in July, compared with $70.95 a barrel during the same month last year. Brent crude also averaged $83.41 a barrel in July, against $70.99 a year earlier.

July alone saw crude imports rise 13.3% to 21.4 MT. The monthly import bill increased to $13.7 billion, from $9.7 billion in July 2025. The pressure had already intensified in the June quarter, when India's crude import bill increased 61% to $49.8 billion despite lower import volumes.

India's combined net oil and gas import bill expanded to $57.8 billion during April-July, compared with $40.3 billion a year earlier. Gross petroleum imports were valued at $69 billion, up from $48.2 billion. Petroleum product imports, however, declined sharply, with volumes falling 45.1% to 9 MT.

LNG imports moved in the opposite direction, rising to 11,867 million standard cubic metres, while their value increased to $5.6 billion. India's dependence on overseas crude remained particularly high. Crude oil import dependency stood at 88.3% during April-July, while domestic production declined to 9.1 MT from 9.5 MT a year earlier.

Overall oil and gas import dependence edged up to 80.4%. The high dependence on imported crude oil and natural gas is a concern for India, as it makes the country vulnerable to fluctuations in global energy prices.

The increase in the crude oil import bill is likely to have a significant impact on India's trade deficit and current account balance. It may also lead to higher fuel prices and inflation, which could affect the country's economic growth.

In conclusion, the sharp increase in India's crude oil import bill is a cause for concern, and the government may need to take steps to reduce the country's dependence on imported energy and promote domestic production.