India Oil Import Bill Soars 26% Despite Lower Volumes

India's crude oil import bill rose sharply in the first quarter of FY27, despite a decline in volumes. According to Commerce Ministry data, India imported 59.7 million tonnes of crude oil between April and June, which is an 18% decrease from the same period last fiscal.

The country's import bill increased by 26% year-on-year to $49 billion this quarter, compared to $39 billion in the previous quarter. This rise is largely attributed to the conflict in West Asia, which disrupted supplies and pushed global oil prices higher.

Crude prices had been below $70 per barrel before the US-Iran conflict erupted in February, but surged after disruptions to shipments through the Strait of Hormuz, a key route for global oil supplies. Brent crude touched nearly $120 a barrel at its peak.

India's largest crude supplier during this quarter was Russia, which supplied oil at an average cost of $2,408 per tonne. The UAE was the second-largest supplier, followed by Saudi Arabia and Venezuela. The shift in crude prices and higher risk premiums underline the vulnerability of India's oil import bill to geopolitical disruptions.