Archive · 21 Jul 2026
India's Oil Import Bill Surges Amid Middle East Conflict
India's oil import bill has gone up a lot because of the conflict in the Middle East.
This is making oil more expensive, which is bad for India's economy.
India gets most of its oil from other countries, and a lot of it passes through a place called the Strait of Hormuz.
There are worries that the conflict might disrupt the oil supply, making it even more expensive.
Some people think India's oil supply is safe for now, but others are worried.
The higher oil prices are also making things more expensive in India and the United States, which could affect elections and people's lives.
India's oil import bill surged nearly 60% in the three months to June from a year earlier due to higher global prices.
India imports around 88% of the crude oil it consumes, with 40% of its crude imports passing through the Strait of Hormuz.
The escalating conflict in the Middle East, including US strikes on Iranian targets and Houthi rebels' blockade, has raised fears of supply disruptions.
Brent crude prices surged above $91 a barrel, and US benchmark West Texas Intermediate climbed above $85 due to the growing risk of supply disruptions.
Higher oil prices are straining India's government finances, widening the trade deficit, and reigniting inflation.
- Who
- India, United States, Iran, Yemen's Houthi rebels, President Donald Trump
- What
- India's oil import bill surged due to higher global prices and potential supply disruptions in the Middle East.
- When
- The cost of importing crude oil jumped nearly 60% in the three months to June from a year earlier.
- Where
- The Strait of Hormuz, Middle East, India, United States
- Why
- The escalating Middle East conflict and higher global prices have led to a surge in India's oil import bill, straining government finances and widening the trade deficit.
Supply Security Optimists
Supply Disruption Pessimists
India's Immediate Supply Position
Supply Security Optimists
India's crude supplies should remain adequate until at least mid-September due to diversified sourcing from Russia, Venezuela, West Africa, and the Middle East.
Supply Disruption Pessimists
The threat to energy lifelines has escalated with Yemen's Houthi rebels declaring a naval blockade against Saudi Arabia, raising fears of supply disruptions.
- Crude Oil Import Cost Increase
- Nearly 60% in the three months to June from a year earlier
- Percentage of Crude Oil Imported
- 88%
- Percentage of Crude Imports Passing Through Hormuz
- 40%
- Percentage of LNG Supplies Passing Through Hormuz
- 60%
- Percentage of LPG Imports Passing Through Hormuz
- 90%
- Brent Crude Price Surge
- Above $91 a barrel
- US Benchmark West Texas Intermediate Price
- Above $85 a barrel
- Consumer Inflation in India
- 4.38% in June