India’s Crude Oil Import Bill Jumps 48% To $74.8 Billion During April-August As Global Prices Surge

India’s crude oil import bill increased sharply by 48% to $74.8 billion during the April-August period as global crude prices climbed, even though the country’s import volumes remained almost unchanged, according to a report by Moneycontrol citing data from the Petroleum Planning and Analysis Cell (PPAC).

India imported 100.7 million tonnes of crude oil during the period, compared with 101.1 million tonnes in the same period last year.

However, in August alone, the import bill rose 18% to $11.7 billion despite a 3% decline in volumes to 19 million tonnes.

West Asia tensions push up crude prices

Brent crude prices remained above the $100-a-barrel mark for more than 18 days amid rising tensions in West Asia. On September 21, Brent was trading around $102 a barrel after a decline of 2% from the previous close.

The escalation of US-Iran tensions, concerns over the Strait of Hormuz and attacks by Yemen’s Houthis on Saudi Arabia have supported crude prices. India’s average crude basket price rose to $113.9 a barrel in September from $69.61 a year earlier.

Higher oil costs remain a key economic risk

India, the world’s third-largest crude importer, meets more than 85% of its oil requirements through overseas purchases. Analysts said the key concern is not crude availability but the impact of higher landed prices on the import bill, current account deficit and economic growth.

Every $1 increase in crude prices raises India’s annual import bill by up to $2 billion. Analysts expect crude prices to remain elevated if West Asia tensions continue, keeping pressure on India’s energy costs.