India's Oil Import Bill Increases 70% to $35.5 Billion in First 2 Months of FY27 Amid Rising Crude Oil Prices

India's oil import bill increased by 70% to $35.5 billion during April 2026 and May 2026, according to the Petroleum Planning and Analysis Cell (PPAC). Despite a 1.4% decline in import volumes to 41.7 million tonnes, the increase was primarily driven by the Iran war escalating crude oil prices beyond $100 a barrel. 

Impact of Rising Crude Prices in India 

During April 2026, crude oil prices remained volatile. Prices briefly dipped to $90 on April 17, 2026, after a temporary ceasefire was announced between the US and Iran, before climbing to $126.41 by April 30, 2026, amidst renewed conflict fears. The average crude price for the month was around $117 per barrel, contributing significantly to the higher import bill. 

India’s April-May Oil Import Volumes 

India’s crude import volume decreased by 1.4% to 41.7 million tonnes, while domestic production fell by 4% to 4.6 million tonnes. The conflict in West Asia disrupted supply routes, especially through the Strait of Hormuz, impacting India's import capabilities. 

Read More: Crude Oil Drops 22% in 1 Month: OMC, Aviation and Tyre Sectors in Focus! 

India’s Natural Gas Imports and Diversification 

India's natural gas imports also fell by 19% in the initial 2 months of FY27, with a bill decrease of 4% to $2.2 billion. Strikes in Iran significantly damaged QatarEnergy's facility, affecting supply. Consequently, India is diversifying its LNG sources, tapping into markets like Canada, the US, Brazil, and Mozambique. 

India’s Petroleum Product Exports 

The West Asia conflict additionally affected the exports of petroleum products, falling by 26% to 7.2 million tonnes. However, the value from petroleum exports rose by 45% to $8.3 billion from the preceding year. 

Conclusion 

During April 2026 and May 2026, India’s crude import bill surged by 69.8% to $35.5 billion due to an increase in crude prices. This was despite a 1.4% drop in import volumes to 41.7 million tonnes. Natural gas imports saw a 19% reduction in the same period. 

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