India's crude import bill jumps 41% in July as global oil prices stay high
India's crude oil import bill rose by more than 41% year-on-year to $13.7 billion in July, driven by elevated global oil prices and continued uncertainty in West Asia, according to provisional data from the Petroleum Planning and Analysis Cell (PPAC).
The country's crude oil imports increased 13.3% in volume terms to 21.4 million metric tonnes (MMT) in July, compared with 18.9 MMT in the same month last year. However, the sharp rise in international crude prices pushed the import outgo significantly higher.
India's crude basket averaged $82.04 a barrel in July, up from $70.95 a barrel a year earlier. Benchmark Brent crude futures remained volatile during the month as episodic developments in West Asia influenced market sentiment. On Tuesday evening, Brent crude futures were trading more than 1% higher at around $91.84 a barrel following the latest escalation in the region.
India's liquefied natural gas (LNG) imports remained largely stable, increasing marginally by 1.5% year-on-year to 2,915 million standard cubic metres (MMSCM) in July.
The country continues to depend heavily on overseas supplies to meet its energy requirements. Crude oil imports accounted for 88.5% of India's total crude oil consumption, according to the provisional PPAC data.
In contrast, exports of petroleum products by Indian oil-marketing companies rose 10% year-on-year to 5.5 MMT in July. Revenue from petroleum product exports increased to $5 billion during the month, compared with $3.3 billion a year earlier.
The net import bill for oil and gas – the difference between crude and gas imports and petroleum product exports – rose more than 19% year-on-year to $11.2 billion in July.
Higher crude prices have implications for India's trade deficit, inflation, and fiscal indicators. Analysts note that sustained price pressure could weigh on the country's current account balance and influence domestic fuel pricing decisions. However, the government has not yet made any announcement on adjusting retail fuel prices.
The global oil market remains sensitive to geopolitical developments, and any further escalation could keep prices elevated in the coming months. India, as one of the world's largest oil importers, continues to monitor the situation closely.
