India's oil bill has ballooned this year, and it is not because the country is buying much more crude. Government data released late on Friday shows India spent $90.6 billion on crude oil imports between April and September 2026, a 46.3% jump from $61.9 billion in the same period last year. Volumes barely moved. The sharp rise is almost entirely down to higher global prices.
The numbers come from the latest Monthly Ready Reckoner of the Petroleum Planning and Analysis Cell (PPAC), the oil ministry's data arm.
Prices, Not Volumes, Drove the Bill
India imported 122.7 million metric tonnes (MMT) of crude in the first half of the financial year, almost the same as 121.8 MMT a year ago. What changed was the price. The Indian basket of crude averaged $116.09 a barrel in September 2026, up from $90.19 in August and far above $69.61 in September 2025. Brent averaged $116.77 a barrel in September.
September alone cost India about $15.4 billion in crude imports, roughly 47% more than a year earlier. Reports also show crude import volumes in September rose about 7% to 21.7 MMT.
Key Numbers, April-September 2026
| Crude import bill | $90.6 billion (up 46.3%) |
| Last year | $61.9 billion |
| Import volume | 122.7 MMT (vs 121.8 MMT) |
| Import dependence | 88.1% (vs 88.3%) |
| Indian basket, Sept 2026 | $116.09 per barrel |
| Indian basket, Sept 2025 | $69.61 per barrel |
| September import bill | About $15.4 billion (up about 47%) |
| Domestic crude + condensate output | 13.7 MMT (vs 14.2 MMT) |
Home Production Keeps Slipping
India's own oil output continues to fall, which makes the country even more exposed to global swings. Crude oil and condensate production dropped to 13.7 MMT from 14.2 MMT. Crude oil alone fell to 12.8 MMT from 13.2 MMT. India now depends on imports for about 88% of its crude needs.
The gas picture is similar. Domestic natural gas production fell 4.4% to 16,804 million standard cubic metres (MMSCM), while LNG imports rose 4.4% to 18,189 MMSCM. Gas import dependence climbed to 52.3% from 50.1%.
How Indians Are Using Fuel
Overall consumption of petroleum products fell 3.3% to 114.8 MMT. The biggest drops were in LPG, down 15.5% to 13.7 MMT, naphtha, down 18%, and bitumen and petcoke, both down over 25%. But transport fuels kept growing: diesel use rose 4.9% to 47.9 MMT, petrol rose 7.1% to 22.7 MMT and jet fuel was up 0.6%.
The steep fall in LPG use is the number many households will notice, since it shows how sharply cooking gas consumption has dropped this year.
What It Means for Your Wallet
A bigger oil bill means more dollars flowing out of the country, which puts pressure on the rupee and on the current account. If high crude prices last, the cost tends to show up in petrol, diesel and transport costs, which then feed into the prices of everyday goods. With retail inflation already rising, a long spell of oil above $100 a barrel would make the job of keeping prices in check harder.
The data also has a message for the government's finances. A higher import bill can widen the trade deficit at a time when exports are only just picking up, and it can force tough choices on fuel taxes and subsidies if pump prices are to be kept steady. Oil marketing companies, meanwhile, face pressure on margins whenever retail prices lag behind crude costs for long.
There are some cushions. India continues to diversify its suppliers, and the US decision to waive tariffs on major buyers of Russian oil gives refiners more flexibility in where they source crude.
What Happens Next
Much depends on how global prices move in the coming months, especially with tensions in West Asia affecting supply routes. Oil marketing companies, the RBI and the finance ministry will all be watching closely. The next PPAC update will show whether October brings any relief, while any change in fuel prices at the pump will be the clearest sign of how much of the burden reaches consumers.
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