India’s Crude Oil Import Bill Jumps 48% To $74.8 Billion During April-August As Global Prices Surge

India's crude oil import expenses surged by 48% to $74.8 billion from April to August as global oil prices skyrocketed, despite import quantities remaining almost constant, according to Moneycontrol, which referenced figures from the Petroleum Planning and Analysis Cell (PPAC). During the same period last year, India bought 101.1 million tonnes of crude oil, but this year imported 100.7 million tonnes.

In August specifically, the import bill grew 18% to $11.7 billion, even though volumes fell by 3% to 19 million tonnes. West Asia instability is driving up crude prices, with Brent crude trading above $100 a barrel for over 18 days due to heightened tensions in the region. On September 21, Brent was at $102 a barrel, down 2% from the prior close.

The surge in US-Iran tensions, worries over the Strait of Hormuz, and Houthi attacks on Saudi Arabia have bolstered crude prices. In September, India's average crude basket price jumped to $113.9 a barrel from $69.61 a year ago. Higher oil costs pose a significant economic threat for India, which imports over 85% of its oil. Experts warn that the main concern is not supply but the effect of higher landed prices on the import bill, current account deficit, and economic growth.

Every $1 increase in crude prices adds up to $2 billion to India's annual import bill. Analysts anticipate that if tensions in West Asia persist, crude prices will stay high, continuing to strain India's energy expenses.