Middle East Tensions Push India's Oil Import Bill Up 46 Percent

Data from the Petroleum Planning and Analysis Cell reveals that while import volumes grew by only 7 percent, the financial burden ballooned as the Indian crude basket averaged $116.09 per barrel. This figure surpasses the previous peak of $114.48 recorded during the April blockage at the Strait of Hormuz. The trend continued into the first half of the fiscal year, with total import costs reaching $90.6 billion between April and September, compared to $61.9 billion a year ago.

Escalating freight rates on the Persian Gulf route have compounded the problem, with costs for shipping from Saudi Arabia’s Ras Tanura to India tripling or quadrupling since February. Government projections suggest that October expenses may climb even higher, as the average price of the Indian crude basket has already hit $121.25 per barrel this month. With shipping risks remaining elevated, India faces sustained pressure on its import budget despite relatively flat consumption levels.