India’s expenditure on crude oil imports experienced a significant surge in September, recording a 46% year-on-year increase. According to provisional data released by the Petroleum Planning and Analysis Cell (PPAC), the country spent $15.4 billion on crude imports during the month, a substantial rise compared to the $10.5 billion recorded in September 2025. This sharp increase in the import bill comes as global oil prices remain elevated, exacerbated by ongoing concerns regarding potential supply disruptions in West Asia.
While the financial cost of these imports climbed steeply, the actual volume of oil imported saw a much more modest growth. India imported 21.7 million tonnes (MT) of crude in September, representing a 7% increase from the 20.3 MT imported during the same period last year. The discrepancy between the modest volume growth and the substantial rise in costs is largely attributed to the volatility and upward trajectory of global crude prices throughout the month.
Data from the PPAC indicates that the Indian crude basket reached a monthly peak of $130.19 per barrel on September 15. On average, the Indian crude basket stood at $116.09 per barrel in September, marking a sharp contrast to the $69.61 per barrel average recorded in September 2025 and the $90.19 per barrel seen in August 2026. Brent crude mirrored this trend, averaging $116.77 per barrel during the month, compared to $90.84 in August and $68.02 in the same month of the previous year.
The financial impact of these price trends is also evident when looking at the first half of the current financial year. From April to September 2026, India imported 122.7 MT of crude, a figure only marginally higher than the 121.8 MT imported during the corresponding period of the previous year. Despite this relatively stable volume, the import bill for the six-month period jumped from $61.9 billion in 2025 to $90.6 billion in 2026.
In contrast to the rising crude costs, the country’s LNG import performance presented a different picture. The LNG import bill for September remained unchanged at $1.2 billion compared to the same month last year. This stagnation in cost occurred even as import volumes declined by 8.5%, falling to 2,957 million standard cubic metres (MMSCM) from 3,233 MMSCM reported in September 2025.
When accounting for both oil and gas, the net import bill saw a notable rise. The net import bill increased by 40% year-on-year, reaching $13.4 billion in September, up from $9.6 billion in the previous year. Similarly, for the first half of the 2026-27 financial year, the cumulative net import bill rose by 35%, totaling $81.1 billion compared to $60.2 billion in the same period of 2025-26.
These figures highlight the vulnerability of India’s energy import costs to global price fluctuations. As markets continue to monitor the situation in West Asia, the elevated price levels remain a primary factor in the country's rising energy expenditure. Analysts and policymakers continue to track these import metrics closely, given their significant influence on the nation's broader economic indicators.
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