India's Crude Oil Basket Surges 11% Amid Strait of Hormuz Disruptions
India's dependence on overseas crude oil has left its economy vulnerable to supply route disruptions. On July 25, 2026, the Indian crude oil basket rose by 11% to $103 a barrel, a sharp reminder of this vulnerability.
The Indian crude oil basket is a weighted average price calculated from the specific grades of crude that Indian refiners actually purchase, blending Brent crude, Oman crude, and Dubai crude. This composition matters because Oman and Dubai grades are priced differently and serve different refinery configurations.
India's retail fuel prices are linked to international FOB (free-on-board) product prices, which incorporate refining costs, freight charges, and marketing margins layered on top of raw crude. When crude prices rise sharply but retail prices remain fixed, oil marketing companies absorb the difference as a loss.