India’s crude import bill surges 41% in July amid West Asia crisis; volumes up 13%
India's crude oil import bill rose by 41% in July to $13.7 billion due to higher global prices and increased import volumes. The surge is attributed to ongoing instability in West Asia, which continues to drive volatility in Brent crude prices.
Why it matters
Rising energy import costs significantly impact India's trade balance and overall economic stability, given the country's high dependence on foreign oil.
India’s crude oil import bill surged more than 41% year-on-year to $13.7 billion in July, as elevated global oil prices amid persistent uncertainty in West Asia pushed up the cost of shipments, according to provisional data released by the Petroleum Planning and Analysis Cell (PPAC).
The country’s crude oil imports rose 13.3% in volume terms to 21.4 million metric tonnes (MMT) in July, compared with 18.9 MMT in the same month last year. However, the sharp increase in international crude prices resulted in a significantly higher import outgo.
India’s crude basket averaged $82.04 a barrel in July, up from $70.95 a barrel a year earlier. Benchmark Brent crude prices remained volatile during the month as episodic developments in West Asia continued to influence market sentiment.
Brent crude futures were trading more than 1% higher at around $91.84 a barrel on Tuesday evening following the latest escalation in the region.
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