India's crude oil import bill increased by 47% in September, reaching $15.4 billion. This growth is attributed to a sharp rise in energy prices caused by intensified attacks in West Asia, according to data from the Petroleum Planning and Analysis Cell (PPAC).
Despite the significant increase in cost, crude oil imports grew by only 7%, amounting to 21.7 million tonnes (MT) for the month, compared to 20.3 million tonnes the previous year.
The sharp increase in the bill occurred against the backdrop of the average price of crude oil in India in September being $116.09 per barrel, which is higher than $69.61 per barrel the previous year. Crude oil remains the largest item of India's imports, accounting for about 20% of the country's total merchandise imports.
India is forced to purchase energy at higher prices to ensure domestic availability amid the ongoing crisis. The rise in energy prices in recent months is linked to supply disruptions triggered by blockades in the Strait of Hormuz and threats in the Bab el-Mandeb Strait—a narrow waterway connecting the Red Sea and the Gulf of Aden—which restricts supplies from West Asia.
According to data from the analytical firm Kpler, Russia remained the largest supplier of crude oil to India in September, providing 35% of the total import volume. The five leading suppliers—Russia, Iraq, Saudi Arabia, United Arab Emirates (UAE), and Kuwait—collectively supplied 70% of India's crude oil needs during the month.
India's net account for oil and gas, which accounts for expenses on petroleum products such as crude oil, liquefied natural gas (LNG), and liquefied petroleum gas (LPG), minus revenues from processed product exports, rose by almost 40% year-on-year (YoY) to $13.4 billion in September. Meanwhile, India's export of petroleum products decreased by 24.6% year-on-year in September.
Of the total bill of $15.4 billion, the import of crude oil accounted for the majority, while LNG imports amounted to $1.2 billion. In September, petroleum product exports generated $4.8 billion for the country.
For the first six months of the current fiscal year (April-September 2026-27), India's crude oil import bill increased by 46.4% to $90.6 billion, and the net account for oil and gas rose by 35% to $81.1 billion during this period.