India’s crude oil import bill surged close to $50 billion in the first quarter of 2026-27 despite a sharp decline in import volumes, as global tensions and rising prices inflated costs for the world’s third-largest crude importer.
India’s crude oil import bill rose sharply in the first quarter of fiscal 2026-27 even as the country brought in less oil, underscoring how a spike in global prices can outweigh weaker volumes. Commerce department data cited by The Economic Times showed crude imports fell 18% year on year to 59.7 million tonnes between April and June, but the value of those purchases climbed 26% to $49 billion from $39 billion a year earlier.
The increase was driven largely by the West Asia conflict, which lifted oil prices and raised the cost of shipping and insurance. According to the report, Brent crude had been below $70 a barrel before tensions escalated in February, then surged as disruption through the Strait of Hormuz, a critical shipping route for global energy trade, threatened supply. The weakening rupee added another layer of pressure.
India, the world’s third-largest crude importer, depends on imports for about 88% of its annual consumption. The Economic Times said roughly 40% of India’s crude imports during the quarter came through the Strait of Hormuz from West Asian suppliers. It also noted that every $1 increase in oil prices can add as much as $2 billion to India’s annual import bill, given the country imports 1.8 billion to 2 billion barrels a year.
Russia remained India’s biggest supplier in the quarter, accounting for more than 40% of imports, followed by the United Arab Emirates at 14.6%, Saudi Arabia at 9.9%, Venezuela at 5.2% and Oman at 4.5%, according to the commerce department data. The report quoted a state-run refinery executive as saying refiners’ priority was to secure supply for 1.4 billion people, but that discounts available before the conflict had vanished and war-risk premiums had become significant.
Other Indian media reports pointed in the same direction. Mint said the crude import bill came to nearly $50 billion in the quarter, while Financial Express put the rise at 77% in rupee terms to ₹4.64 lakh crore despite a fall in volumes. An infographic published by NDTV showed May imports alone reaching $18.7 billion, and Informist said June’s bill climbed 48% from a year earlier even as volumes fell.
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