India's crude oil imports increased in September. The import bill for the month increased by 47%. Consequently, it appears that petrol and diesel prices may rise again in the near future.
Crude oil imports into the country
Crude oil is India's largest import. The war with Iran has been ongoing for the past few months, impacting crude oil imports. Meanwhile, India's crude oil import expenditure increased 47% year-on-year to $15.4 billion (approximately Rs 1.45 lakh crore) in September 2026.
Rising tensions in West Asia and rising energy prices were the main reasons behind this. According to data from the Petroleum Planning and Analysis Cell (PPAC), import volumes increased only marginally compared to the sharp increase in oil prices.
How much crude oil was imported in September?
India imported 21.7 million tonnes of crude oil in September, which was 7% more than 20.3 million tonnes in the same month last year. The country's expenditure has been incurred not only due to oil imports but also due to rising crude oil prices. The average price of Indian basket of crude oil in September was $116.09 per barrel. In September last year, this price was $69.61 per barrel. This means that due to the increase in the price of oil, India's import bill has increased rapidly. Crude oil is one of India's biggest imports.
India is buying crude oil from Russia.
Russia was India's largest crude oil supplier in September. According to Kpler, a maritime trade data company, Russia accounted for 35% of India's total crude oil imports. The five major crude oil suppliers to India include Russia, Iraq, Saudi Arabia, the United Arab Emirates (UAE), and Kuwait. India purchased 70% of its total crude oil imports from these five countries in September.
Will petrol and diesel prices rise again?
It's worth noting that India purchases a large portion of its oil needs from abroad. Consequently, rising crude oil prices in the international market increase the country's import costs. Based on the data, it appears that petrol and diesel prices will also rise in the near future. This could put pressure on the trade deficit and impact the rupee, inflation, and transportation costs. This could lead to another wave of inflation in the country.
