India’s Crude Oil Import Bill Rises 47 Per Cent to $15.4 Billion in September
India’s crude oil import bill increased 47 per cent year on year to $15.4 billion in September 2026, reflecting the impact of higher international oil prices on the country’s energy expenditure. Data from the Petroleum Planning and Analysis Cell (PPAC) showed that the volume of crude oil imported rose by a comparatively modest 7 per cent to 21.7 million tonnes during the month, against 20.3 million tonnes in September 2025.
The increase in spending came as the Indian crude basket averaged $116.09 per barrel in September, significantly higher than the $69.61 recorded in the same month last year. The figures indicate that higher prices, rather than the increase in import volumes alone, were the principal factor behind the rising import bill.
Crude Oil Prices Drive Higher Import Costs
India relies heavily on imported crude oil to meet domestic energy requirements. Consequently, changes in international prices can have a substantial effect on the country's import expenditure, even when the volume purchased remains relatively stable.
According to PPAC data reported by Business Standard, the average price of the Indian crude basket rose from $69.61 per barrel in September 2025 to $116.09 in September 2026. The increase raised the cost of securing supplies for domestic refineries.
Concerns about supply disruptions in West Asia contributed to elevated oil prices during the period. Shipping risks around important maritime routes, including the Strait of Hormuz and the Bab-el-Mandeb Strait, added to uncertainty over energy supplies and transportation costs.
India's crude import bill therefore reflects both the quantity of oil purchased and the price paid for it. When global prices increase sharply, the country may have to spend substantially more even if the volume of imports changes only moderately.
Import Volumes Rise by 7 Per Cent
India imported 21.7 million tonnes of crude oil in September 2026, compared with 20.3 million tonnes in September 2025. This represented an increase of approximately 7 per cent.
The relatively limited growth in import volumes, compared with the 47 per cent increase in the import bill, highlights the influence of higher crude prices on the country's energy expenditure.
Crude oil is a major component of India's merchandise imports. Higher expenditure on energy can affect the overall trade balance because a larger amount of foreign currency is required to purchase supplies from overseas producers.
The financial impact also depends on factors such as international freight costs, the mix of crude grades purchased, exchange-rate movements and the prices received for exported petroleum products.
Net Oil and Gas Import Bill Climbs to $13.4 Billion
India's net oil and gas import bill rose nearly 40 per cent year on year to $13.4 billion in September 2026, compared with approximately $9.6 billion a year earlier.
The net figure measures spending on relevant oil and gas imports after accounting for revenue from petroleum product exports. It provides a broader picture of the country's energy trade balance than the crude oil import bill alone.
During September, India's crude oil imports accounted for $15.4 billion, while liquefied natural gas imports were valued at approximately $1.2 billion. Petroleum product exports generated about $4.8 billion in revenue.
These figures should be distinguished from one another because the crude oil import bill represents gross expenditure on crude, whereas the net oil and gas bill accounts for relevant imports and export earnings under the PPAC calculation.
The rise in the net bill indicates that export earnings did not fully offset the increase in energy import expenditure during the month.
Petroleum Exports Decline by 24.6 Per Cent
India's petroleum exports declined 24.6 per cent year on year in September 2026, according to the reported data.
Petroleum exports are an important part of the country's energy trade because Indian refineries process imported crude oil into products such as diesel, petrol and other fuels for domestic consumption and overseas markets.
A decline in export volumes or earnings can influence the extent to which petroleum exports offset the cost of imported crude and other energy supplies. However, export revenue can also change because of movements in international product prices, the mix of products sold and demand in overseas markets.
The September decline in petroleum exports, combined with the higher crude import bill, contributed to the increase in India's net oil and gas expenditure.
Russia Remains a Major Crude Supplier
Russia remained India's largest crude oil supplier in September 2026, accounting for approximately 35 per cent of total crude imports, according to data from maritime intelligence firm Kpler cited in Business Standard's report.
Iraq, Saudi Arabia, the United Arab Emirates and Kuwait were among India's other major suppliers. Together, the five leading suppliers accounted for around 70 per cent of the country's crude imports during the month.
India's sourcing decisions are influenced by factors including price competitiveness, shipping costs, delivery times, refinery requirements and the availability of different crude grades. Changes in the relative cost of supplies from different regions can therefore affect the country's import mix.
Impact on India's Economy
A sustained increase in crude oil prices can create pressure on India's external finances because the country must spend more to meet its energy requirements. Higher import expenditure can widen the merchandise trade deficit if export earnings and other trade flows do not compensate for the additional cost.
Elevated oil prices can also increase input costs for transportation, manufacturing, aviation and other fuel-dependent sectors. Depending on how these costs are passed through, they may contribute to inflationary pressure across the economy.
The effect on consumers depends on several factors, including domestic fuel pricing, taxation, refining and distribution costs, and government policy. A rise in international crude prices does not automatically translate into an equivalent increase in retail fuel prices.
Outlook for the Coming Months
India's energy import expenditure will continue to depend on global crude prices, geopolitical developments, shipping conditions and the availability of supplies from major producing countries. Domestic production, refinery operations and petroleum export performance will also influence the overall energy trade balance.
The September figures underline India's exposure to international energy market movements. Crude import volumes increased by 7 per cent, but the import bill rose 47 per cent, demonstrating the financial effect of higher prices.
For policymakers and businesses, monitoring crude prices alongside import volumes, export earnings and the net oil and gas bill will be important for assessing the broader economic implications. Future PPAC data will show whether the increase in energy expenditure continues or eases as global market conditions change.
