India’s crude oil import bill jumps 57% to $63.4B

• Crude oil prices surge amid West Asia tensions and supply risks
• Import bill jumped 56% to $63.4 billion during April-July
• Higher costs may pressure the rupee and fuel inflation in India

New Delhi: India could face a bigger oil import bill and fresh inflation pressure as international crude prices climb sharply amid escalating tensions in West Asia and concerns over energy supplies through

the Strait of Hormuz.

Brent crude jumped more than 2% to around $99 a barrel on Tuesday, while US West Texas Intermediate (WTI) gained nearly 3% to about $94.

India’s Crude Import Bill Jumps 56%

India is particularly vulnerable to rising crude prices as it imports more than 88% of its crude oil requirements.

According toPetroleum Planning and Analysis Cell (PPAC) data, India's crude oil import bill surged over 56% to $63.4 billion during April-July, compared with $40.5 billion a year earlier, despite import volumes remaining broadly unchanged.

India’s Crude Oil Import Bill Jumps 57% To $63.4 Billion In April-July FY27 Despite Flat Volumes

The Indian crude basket crossed $100 a barrel, averaging $100.75 in September, against $90.19 in August and $82.04 in July. A prolonged rise in crude prices could increase India's dollar demand, pressure the rupee and trade balance, and push up inflation through higher transport and energy costs. Oil Companies Face Margin Pressure Higher crude prices could also squeeze marketing margins at Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.

Retailpetrol and diesel prices have remained unchanged for more than three months after being raised by a cumulative Rs 7.35 and Rs 7.53 per litre, respectively, in May.

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ICRA's Prashant Vasisht said rising crude prices could turn auto-fuel marketing margins negative and increase domestic LPG under-recoveries from around Rs 200 per cylinder. Strait of Hormuz Disruption Raises Risk The Strait of Hormuz, which normally carries about one-fifth of global oil and LNG supplies, has seen traffic slow sharply. West Asian oil shipments have reportedly fallen to around 11 million barrels per day from roughly 18 million. For India, a prolonged crude oil spike could raise costs for refiners, airlines, petrochemical companies and other energy-intensive industries while increasing pressure on inflation, the current account and the rupee.