Indian Crude Surges Past $100 as Iran-US Tensions Escalate

India's crude oil basket has crossed $100 per barrel for the first time due to renewed tensions between Iran and the US, raising concerns over the country's oil import bill and financial performance of oil marketing companies (OMCs).

The Indian crude basket stood at $101.07 per barrel as of September 4, which could widen India's current account deficit to 1.7% of GDP or about $71 billion if crude prices stay above $90 a barrel for a significant part of the second half of FY27.

OMCs are incurring under-recoveries on both petrol and diesel amid the recent rise in crude oil prices, according to industry sources and analysts. The refinery executive stated, 'There is definitely uncertainty over supplies (from West Asia), but we have alternative supplies, including from Russia, Brazil and African countries.'

CNG prices have already increased in Delhi-NCR and Mumbai due to higher input gas costs amid the West Asia crisis.