Crude Prices Surge: India's Oil Import Bill Set to Rise
India's oil import bill is set to rise as crude prices surge due to supply risks in West Asia. Brent futures rose over 2% to around $99 a barrel, while US West Texas Intermediate crude gained almost 3% to about $94.
The attacks on Saudi energy infrastructure and heightened tensions involving Iran and the US have raised concerns about disruptions to global supplies. India imports over 88% of its crude requirements, making it particularly exposed to swings in international prices.
Analysts warn that a sustained increase in prices will put pressure on the trade balance and the rupee, as well as feed into domestic inflation through fuel and transport costs.
India's crude oil import bill surged by over 56% during April-July to $63.4 billion compared to $40.5 billion in the same period last year, according to the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC).