In July 2026, India’s expenditure on crude oil rose sharply, reaching $13.7 billion, a 41% increase from July 2025. The surge was driven by higher global oil prices linked to ongoing uncertainty in West Asia. At the same time, imports of LNG were almost unchanged, while petroleum product exports grew.
Key Developments (July 2026)
- Import bill for crude oil rose to $13.7 bn, up 41% YoY.
- Volume of crude imports increased 13.3% to 21.4 million metric tonnes (MMT).
- Average basket price of crude was $82.04 per barrel, compared with $70.95 a year earlier.
- Brent crude futures traded above $91.84 per barrel after a regional escalation.
- LNG imports rose modestly 1.5% to 2,915 MMSCM.
- Petroleum product exports climbed 10% to 5.5 MMT, generating $5 bn in revenue.
- The overall net import bill for oil & gas rose 19% to $11.2 bn.
Important Facts
The PPAC reports that crude oil accounts for 88.5% of India’s total crude consumption, underscoring the country’s heavy reliance on imports. Despite the rise in crude costs, LNG imports remained stable, reflecting diversified energy sourcing.
Exam Relevance
Understanding India’s oil import dynamics is crucial for GS‑3 (Economy) as it links to balance of payments, fiscal pressure, and energy security. The data illustrate how geopolitical events in West Asia can quickly translate into higher domestic import bills, affecting inflation and external debt. Aspirants should note the role of PPAC as a key statistical source for policy analysis.
Way Forward
- Enhance domestic exploration and production to reduce the crude oil import share.
- Accelerate renewable energy deployment to lower overall energy import dependence.
- Build strategic petroleum reserves to cushion short‑term price spikes from geopolitical shocks.
- Strengthen diplomatic engagement with oil‑producing nations to secure stable supply contracts.