India's Q1 crude oil import bill hits record $50B
What's the story
India's crude oil import bill for the first quarter of FY27 has hit a record high, nearing $50 billion. The surge is mainly due to supply disruptions caused by the ongoing West Asia conflict, which has pushed prices of this geo-politically sensitive commodity up. According to the Petroleum Planning and Analysis Cell (PPAC), India imported about 60.48 million tons (mt) of crude oil worth around $49.66 billion in April-June of FY27 (provisionally).
Year-on-year increase
A 61% increase in import bill
The crude oil import bill for Q1 FY27 is a whopping 61% higher than that of Q1 FY26 and 32% more than Q1 FY25.
This is the highest value recorded for this period in US dollars.
The weak rupee was one of the reasons behind the higher value in US dollars.
Price fluctuations
Average price of Indian basket crude oil
In April 2026, the average price of crude oil (Indian Basket) was $114.48 per barrel. It then dropped to $106.23 in May and further to $83.22 in June 2026.
As of July this year (till July 29), the average price is $81.11 a barrel.
The West Asia region remains volatile with recurring conflicts impacting these prices significantly.
Import dependence
Import dependency on crude oil
India's import dependence on crude oil during Q1 FY27 stood at a record 89.1% (provisionally), the same as in Q1 FY26.
This is a significant increase from previous years, with the highest recorded import dependency at 90% in April 2025.
For the entire fiscal years of FY26 and FY25, the import dependency was at 88.7% and 88.3%, respectively.
Supply impact
Global impact of West Asia conflict
The West Asia crisis has also affected global petroleum and liquid fuel output, which was about 10 million barrels per day (mb/d) lower in June 2026 compared to the same period last year.
This is mainly due to production losses linked to the ongoing conflict.
However, supply is expected to recover and move into surplus by January 2027, with an oversupply projected by Q3 FY27.