India's Oil Import Bill Set to Surge Amid Crude Price Hike

India's oil import bill is set to surge as crude prices rise due to West Asia supply risks. Brent futures rose over 2% to $99 a barrel, while US West Texas Intermediate crude gained almost 3% to about $94.

The increase in crude prices will put margin pressure on fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), who have already been struggling with accumulated losses for not being able to pass on the entire impact of the rise in oil prices.

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).