India’s crude import bill up 26% in ’26-27 Q1 despite 18% volume fall
India's crude oil import bill surged by 26% in the first quarter of FY27, despite an 18% drop in import volumes. The increase is attributed to rising global oil prices caused by West Asian conflicts and a weakening rupee.
Why it matters
As the world's third-largest oil importer, India's energy security and fiscal health are highly vulnerable to geopolitical instability and currency fluctuations.
NEW DELHI: India's crude import bill rose 26% year-on-year in the first quarter of 2026-27, despite volumes falling 18%, as the West Asia conflict disrupted supplies and pushed up oil prices.Commerce department data showed India imported 59.7 million tonnes (MT) of crude between April and June this year, down from 73 MT in the corresponding period last fiscal. Import bill, however, rose to $49 billion from $39 billion in April-June 2025.India is the world's third-largest crude importer, with imports meeting 88% of annual consumption. Global oil prices, which were below $70 per barrel before the US-Iran conflict broke out in Feb, surged after shipments through the Strait of Hormuz - which handles a fifth of global oil transit - were disrupted. Around 40% of India's crude imports came through the strait from West Asian suppliers. Brent crude touched nearly $120 per barrel at the conflict's peak.
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