Archive · 20 Jul 2026
India's Q1FY27 crude oil imports surge to $50 bn
India bought a lot of crude oil in the first three months of the financial year 2027, spending nearly $50 billion.
This is a big increase from last year because the prices of oil have gone up, and the discounts India used to get are no longer available.
The country is buying less oil in volume but paying more because of the higher prices.
The rupee is also weaker, making imports more expensive.
There are worries about oil supplies being disrupted because of conflicts in the Middle East, which could make things even more expensive.
Experts say this could affect India's trade and economy.
India's crude oil import bill surged to $49.8 billion in Q1FY27, a 60% increase from the previous year.
The volume of oil imported decreased to 60 million tonnes from 62.6 million tonnes a year ago.
Rising oil prices and the end of discounts due to the war in West Asia contributed to the increase in the import bill.
The weakening rupee is exacerbating the cost of oil imports.
Geopolitical tensions, including the threat of closing the Bab el-Mandeb Strait, could further disrupt oil supplies and increase prices.
- Who
- India
- What
- Crude oil import bill surged to $49.8 billion in Q1FY27
- When
- April-June 2024
- Where
- India
- Why
- Due to rising oil prices, end of discounts, and geopolitical tensions
Supply and Demand Dynamics
Geopolitical and Economic Factors
Price vs. Volume
Supply and Demand Dynamics
The increase in the import bill is driven more by rising prices than increased demand, as the volume of oil imported actually decreased.
Geopolitical and Economic Factors
Geopolitical tensions and the end of discounts due to the war in West Asia have significantly contributed to the rise in prices.
Currency Impact
Supply and Demand Dynamics
The weakening rupee is exacerbating the cost of oil imports, making the overall import bill higher.
Geopolitical and Economic Factors
Economic factors such as the depreciating rupee are compounding the pressure on the import bill, alongside geopolitical uncertainties.
- Import Bill
- $49.8 billion
- Import Volume
- 60 million tonnes
- Price Increase
- 60%
- Brent Crude Price
- $90 per barrel
- Rupee Depreciation
- 14 paise to 96.44 against the dollar
- Expected Average Crude Price
- $75-85 per barrel
- Impact of $1 Increase
- ₹18,000 crore increase in import bill