India's Crude Oil Import Bill Surges 61% To Record USD 49.66 Billion In Q1 FY27

New Delhi, Aug 1 (KNN) India's crude oil import bill rose 61 percent year-on-year to a record USD 49.66 billion in the first quarter of FY27, as supply disruptions linked to the West Asia conflict pushed crude prices higher, according to provisional data from the Petroleum Planning and Analysis Cell (PPAC).

Crude Import Bill Hits Record USD 49.66 Billion

India imported around 60.48 million tonnes (MT) of crude oil during April-June 2026, with the import bill rising 32 percent compared with Q1 FY25, reported Businessline.

The Q1 FY27 import bill is the highest recorded for the April-June period in US dollar terms. India had imported a similar volume of crude in Q1 FY23, but the bill stood at around USD 47.88 billion.

The higher import value was also influenced by the depreciation of the Indian rupee, according to the data.

Indian Crude Basket Prices Show Sharp Volatility

The average price of the Indian crude basket stood at USD 114.48 per barrel in April, before declining to USD 106.23 in May and USD 83.22 in June. The average price stood at USD 81.11 per barrel during July through July 29.

Crude prices have remained volatile amid continued uncertainty in West Asia. Prices stood at USD 103.33 per barrel on July 23 before falling to USD 88.87 on July 29.

Crude Import Dependence Remains At 89.1%

India's crude oil import dependence remained at a record 89.1 percent in Q1 FY27 on a provisional basis, unchanged from the corresponding quarter last year. Import dependence had reached an all-time high of 90 percent in April 2025.

For FY26 and FY25, India's crude oil import dependence stood at 88.7 percent and 88.3 percent, respectively.

West Asia Crisis Drives Oil Prices Higher

Before the latest West Asia crisis, the Indian crude basket averaged around USD 69 per barrel in February 2026. The price subsequently surged to USD 136.68 per barrel in March amid geopolitical tensions before moderating.

Global Oil Supply Faces Disruptions

CareEdge, in its latest Markets Roundup, said global petroleum and liquid fuel output in June 2026 was around 10 million barrels per day lower than a year earlier, largely due to production losses linked to the West Asia crisis.

However, the agency expects supply to recover, with the global oil market potentially moving into surplus by January 2027 and returning to oversupply by Q3 FY27.

Oil Market May Rebalance By 2027

CareEdge said rising rig activity, particularly in North America and Africa, along with adjustments in global trade flows and oil demand, could support market rebalancing. However, it noted that global oil markets remain sensitive to geopolitical developments and require close monitoring.

(KNN Bureau)