India’s Crude Import Spending Jumps 48% to $74.8 Billion in First 5 Months of FY27

India’s crude import costs are facing another increase after the Indian crude basket reached $123.86 a barrel on September 18, 2026. The basket was at $99.35 on September 2, 2026, according to news reports citing PPAC data. 

Brent crude was trading at around $102 a barrel on September 21, 2026, afternoon, after falling 2% from the previous close. It had remained above $100 for more than 18 days. 

The latest price movement follows an already expensive August, when India’s crude basket averaged $90.19 a barrel, compared with $69.11 a year earlier. 

Five-Month Bill Reaches $74.8 Billion 

The higher prices have had a direct impact on India’s import spending. The country’s crude bill rose 48.4% year-on-year to $74.8 billion between April and August. 

There was no comparable increase in the amount of crude brought into the country. Imports stood at 100.7 MMT, down 0.4% from 101.1 MMT in the year-ago period. 

India spent $24.4 billion more on crude during the five months. The bill in rupee terms rose 62% to more than ₹7 trillion. 

August Gives a Clearer Picture 

In August 2026, India imported 19 MMT of crude, 3% less than a year earlier. Yet the monthly import bill rose 18% to $11.7 billion. 

Brent averaged $90.84 a barrel during the month, against $68.21 in August 2025. July’s average Indian crude basket price was $82.04 a barrel. 

Domestic Output Falls 

India continues to rely heavily on overseas crude supplies. Import dependence stood at 88.1% during April-August, compared with 88.3% a year earlier. 

Domestic crude production fell to 11.4 MMT from 11.9 MMT. The higher cost of imported oil has also pushed up the wider energy bill. 

Net oil and gas imports rose 34.7% to $66.8 billion from $49.6 billion. Gross petroleum imports increased 36.8% to $81.8 billion. 

Impact on Merchandise Trade 

Petroleum imports accounted for 22.5% of merchandise imports during April-August, compared with 19.5% in the same period last year. 

The merchandise trade deficit widened to $147.1 billion from $123.9 billion. Separately, the current account deficit stood at $4.2 billion, or 0.5% of GDP, in Q1 FY27, against $3.4 billion, or 0.4% of GDP, a year earlier. 

Read More: MSME Credit Grows 12.5% to ₹47.4 Trillion, Small and Medium Firms Lead! 

Conclusion  

Higher crude prices lifted India’s oil import costs during April-August, while crude volumes remained broadly unchanged from a year earlier. 

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