India’s crude oil import bill jumped 41% year-on-year to $13.7 billion in July 2026, as higher global oil prices combined with a rise in import volumes.
The increase came amid continuing disruptions linked to the West Asia conflict, putting renewed pressure on India’s energy import costs and merchandise trade balance.
The latest data from the Petroleum Planning & Analysis Cell (PPAC) show that the increase was driven more by prices than by volumes, although both moved higher.
Crude Prices Drive Import Costs
India imported 21.4 million tonnes of crude oil in July, 13% more than the 18.9 million tonnes imported in July 2025, according to PPAC data cited by Business Standard. At the same time, the Indian crude basket averaged $82.04 per barrel, compared with $70.95 a year earlier.
That means the average crude price was about 15.6% higher than a year earlier. With the country also importing more crude, the combination pushed the monthly import bill sharply higher.
The increase is significant because crude oil remains India’s largest import item, accounting for around one-fifth of the country’s merchandise imports, according to the latest PPAC-based data. Supply disruptions around key maritime routes in West Asia have added to the volatility in energy markets.
FY27 Oil Bill Climbs Further
The pressure becomes clearer when the monthly number is placed against the broader financial-year picture.
India’s crude oil import bill reached $63.4 billion during April-July of FY2026-27, representing a 56.5% increase from the corresponding period a year earlier. The country’s net oil and gas bill, after accounting for earnings from refined petroleum exports, rose 40.3% to $57.8 billion during the same period.
In July alone, the net oil and gas bill increased 19% year-on-year to $11.2 billion. LNG imports were worth $1.2 billion, while petroleum product exports generated about $5 billion.
The figures underline the difference between the cost of importing crude and the broader petroleum trade. India has substantial refining capacity, allowing refiners to process imported crude into fuels and other products for both domestic consumption and export.
Trade Deficit Faces Oil Pressure
Higher energy costs are also feeding into India’s external trade position, although oil is not the only factor behind the wider deficit.
India’s merchandise trade deficit widened to a six-month high of $31.98 billion in July from $30.43 billion in June, Reuters reported, citing Commerce Ministry data. Merchandise imports rose to $76.22 billion, while goods exports reached a record $44.24 billion.
The Commerce Ministry’s trade data put July oil imports at $18.31 billion, compared with $19.33 billion in June. This figure should not be directly compared with PPAC’s $13.7 billion crude-import bill because the two datasets cover different statistical measures.
Other imports also contributed to the trade gap. Electronics imports rose more than 44% year-on-year to $14.37 billion, while gold imports increased nearly 5% to $4.16 billion, according to Reuters.
Russia Remains Key Supplier
India’s crude sourcing has also shifted during the West Asia disruption. Kpler data cited in Business Standard’s August 18 report showed Russia as India’s largest crude supplier in July, accounting for 55.5% of total crude imports.
The UAE, Saudi Arabia, Venezuela and Brazil were the other major suppliers, with the five countries together accounting for more than 80% of imports.
For India, the immediate variable remains the global crude price. July’s numbers show that even a moderate increase in import volumes can translate into a substantially larger energy bill when international prices rise.
With the crude import bill already at $63.4 billion in the first four months of FY2026-27, oil prices and supply conditions will remain important indicators for India’s trade position through the rest of the financial year.
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