India’s Crude Import Bill Falls 18% in April–July, But Risks Ahead with US Tariffs

India’s crude oil import bill fell to $40.4 billion in April–July FY26, down from $49 billion a year earlier, government data shows.

The country imported 81.2 million tonnes of crude during the period, almost flat compared to 81.7 million tonnes last year. However, import dependence rose to 88.8% as demand for fuel kept growing.

July Numbers at a Glance

• Imports: 18.6 million tonnes (vs 19.4 mt last year)
• Import bill: $9.5 billion (vs $11.5 bn last year)

Russian Discounts Cushion Refiners

The fall in costs was mainly due to discounted Russian barrels, which remain cheaper than Middle Eastern crude. On average, Russian oil was $5 per barrel cheaper than other sources in April–May 2025, saving India billions of dollars annually.

Read More: Crude Oil Prices Slip as Easing Russia Supply Fears Follow Trump-Putin Talks!

US Tariffs Pose a Risk

However, this cost advantage may be at risk. The US has imposed a 50% tariff on India for buying Russian oil. If enforced, this could:

• Increase India’s import bill
• Reduce access to discounted crude
• Force refiners to explore alternative supply options

Conclusion

India’s crude import bill has eased thanks to Russian discounts, offering savings and cushioning inflation. But with new US tariffs looming, the country’s refining strategy may face a real test. Balancing cost, supply security, and geopolitics will be key in the coming months.

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