West Asia conflict inflates India’s net oil, gas import bill by 43% in April-July

The West Asia conflict has caused a 43.4% increase in India's net oil and gas imports in value terms over the first quarter of the current financial year, according to provisional data from the petroleum ministry. Net imports totaled $57.8 billion for April-July, compared to $40.3 billion a year ago. Oil imports specifically saw a sharp rise, with the bill reaching $63.4 billion compared to $40.3 billion a year ago, a 56% increase on a year-on-year basis.

This spike in prices, driven by supply tightness due to the Strait of Hormuz crisis, forced India to import oil and gas at substantially higher rates. Despite the increase in prices, India's dependence on imported oil remained at 88.3%, nearly unchanged compared to the same period last year. LNG imports also saw a price surge, with the bill rising by almost a quarter to $5.6 billion.

Petroleum product imports declined in volume but not proportionally in value, reflecting high international prices. India, which imports over 88% of its crude oil and nearly half of its natural gas, relies heavily on imports to meet its energy needs, with the conflict in West Asia intensifying these challenges.