India spent $90.6bn on crude imports in April-September despite buying almost the same volume as a year earlier, as higher global prices and falling domestic production increased its exposure to external shocks.
India’s crude oil import bill climbed sharply in the six months to September, even though the country bought almost the same amount of oil as a year earlier. The latest Monthly Ready Reckoner from the Petroleum Planning and Analysis Cell showed the value of crude imports rising to $90.6 billion in April-September from $61.9 billion a year earlier, a jump of 46.3%. The main driver was higher global prices, not a surge in volumes, with crude imports edging up only marginally to 122.7 million metric tonnes from 121.8 million.
The rise accelerated through the period as international benchmarks strengthened. The Indian basket crude price averaged $116.09 a barrel in September, up from $90.19 in August and $69.61 in September last year, according to the PPAC. Reuters-style reporting based on the same government data has shown the import bill was already up by nearly 50% in the earlier April-August period, when volumes were largely flat. That pattern suggests India is increasingly exposed to price swings rather than changes in demand alone.
India’s dependence on imported crude remained high at 88.1% of consumption during the half-year, broadly unchanged from 88.3% a year earlier. But domestic output weakened at the same time, making the country more vulnerable to external price shocks. Crude and condensate production fell to 13.7 million metric tonnes from 14.2 million tonnes in the comparable period a year ago, while crude oil output alone dropped to 12.8 million tonnes from 13.2 million tonnes.
The pressure is not limited to crude. Gross natural gas production declined 4.4% in April-September, while liquefied natural gas imports rose 4.4%, pushing gas import dependence to 52.3% from 50.1%. Yet overall gas consumption was almost unchanged, suggesting imports are filling a production gap rather than meeting a fresh surge in demand. That mirrors the broader energy picture: India is paying more for imported fuel even as domestic supply growth remains sluggish.
Within petroleum products, consumption fell 3.3% to 114.8 million metric tonnes, led by lower use of LPG, naphtha, bitumen and petcoke. Transport fuels remained comparatively resilient, with diesel consumption up 4.9% and petrol up 7.1%, while jet fuel rose slightly. Refinery throughput increased 1.4% and output of petroleum products was broadly steady, but the mismatch between weaker domestic demand and stronger import costs leaves the government exposed if crude prices stay elevated for longer.
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