Key Takeaways
- India’s crude import bill rose as crude imports fell 3% in August.
- The crude import bill rose more than 18% to $11.7 billion as oil prices increased.
- India’s crude basket averaged $90.19 a barrel in August, compared with $69.11 a year earlier.
India’s crude import bill rose more than 18% in August even as crude oil imports fell 3% year-on-year, as higher oil prices increased purchase costs.
Crude import volume falls in August
India imported about 19 million tonnes (MT) of crude oil in August 2026, down from 19.6 MT in August 2025. The latest figure also marked an 11.2% decline from July, when crude imports reached 21.4 MT.
Despite the lower volume, the country spent $11.7 billion on crude purchases in August. That was more than 18% higher than the $9.9 billion spent during the same month last year.
The gap between import volume and spending mainly reflects the sharp rise in crude prices. The Indian crude basket averaged $90.19 a barrel in August, compared with $69.11 a barrel a year earlier.
Higher oil prices lift India’s energy costs
The higher crude price added to import costs even as refiners bought less oil. Supply disruptions in key shipping routes also increased freight and war-risk insurance costs, adding pressure to the landed cost of crude.
India’s crude basket had already become more expensive in July. The average price stood at $82.04 a barrel that month, up from $70.95 a year earlier. At the same time, crude imports rose 13% in volume terms to 21.4 MT, pushing the July crude import bill to $13.7 billion.
August also brought a change in petroleum product consumption. Domestic petroleum product consumption fell 2.8% year-on-year to 18.6 MT, compared with 19.1 MT in August 2025.
India’s crude import bill rises despite lower volumes
While crude spending increased, India’s net oil and gas import bill remained at $9.3 billion in August, unchanged from the same month last year. Crude oil imports accounted for $11.7 billion, while LNG imports stood at $1.2 billion and petroleum product exports brought in $5 billion.
The figures highlight how crude prices can have a large effect on India’s crude import bill even when refiners reduce purchase volumes. India relies heavily on imported crude to meet its energy needs, making international oil prices an important factor for the country’s trade and energy costs.
The August data also follows a sharp increase in crude-related spending earlier in the financial year. From April to July, India’s crude import bill rose 56.5% year-on-year to $63.4 billion, while the net oil and gas import bill increased 40.3% to $57.8 billion.
