India's Crude Import Costs Jump 46% in September 2026

In September 2026, India experienced a significant increase in its crude oil import bill, which surged by 46% compared to the same month last year, totaling $15.4 billion. This spike occurred despite only a 7% rise in import volumes, which reached 21.7 million tonnes. The surge in costs is attributed to persistently high global oil prices, exacerbated by ongoing supply disruptions from West Asia.

Data from the Petroleum Planning and Analysis Cell (PPAC) indicates that the Indian crude basket hit a peak of $130.19 per barrel on September 15, averaging $116.09 per barrel throughout the month. This is a stark increase from the average price of $69.61 per barrel in September 2025 and $90.19 in August 2026. Brent crude prices also reflected this trend, averaging $116.77 per barrel, a rise from $90.84 in August and $68.02 in September of the previous year.

During the first half of the 2026-27 financial year, India imported a total of 122.7 million tonnes of crude oil, slightly above the 121.8 million tonnes imported during the same period last year. However, the financial burden of these imports escalated dramatically, with the total import bill climbing to $90.6 billion from $61.9 billion.

In contrast, the liquefied natural gas (LNG) import bill remained stable at $1.2 billion in September, despite an 8.5% decrease in import volumes, which fell to 2,957 million standard cubic metres from 3,233 million standard cubic metres. The overall net oil and gas import bill for September rose by 40% year-on-year, reaching $13.4 billion, compared to $9.6 billion in September 2025.

Looking ahead, the implications of these rising import costs are significant for India's economy, as they may affect trade balances and inflation rates. The government and industry stakeholders will need to monitor global oil price trends closely, as further fluctuations could impact future import strategies and energy policies.