India spent $9.7 billion in December to purchase 20.8 million tonnes of crude oil, compared with $ 10.6 billion for 20.2 million tonnes during the same month last year, as sliding crude oil prices in the global market drove the oil import bill down 8.5 per cent.
The savings came despite the country’s growing appetite for fuel, with crude oil imports rising by 3.2 per cent in volume compared with December 2024.
For the nine-month period from April to December, the oil bill fell 11.5 per cent to $90.7 billion, compared with $102.5 billion during the same period last year.
Crude oil imports account for nearly a quarter of the country’s total imports, whilst imports meet 88.6 per cent of domestic demand during the nine months ended December. Global benchmark Brent crude fell 20 per cent this year to trade near $60 a barrel.
The decline in India’s oil expenditure reflects broader trends in international energy markets, where North Sea Dated crude fell by about $1/bbl on average month-on-month, to $63.63/bbl in November.
The Brent crude oil spot price averaged $63 per barrel in December, $11/bbl lower than the average in December 2024.
The International Energy Agency estimates that output could exceed consumption by around 3.8 million barrels a day in 2026, suggesting continued pressure on prices.
India’s reduced oil bill came even as domestic fuel consumption showed robust growth of 5.3 per cent in December at 21.74 million tonnes, with higher consumption led by stronger demand for LPG at 11.2 per cent, petrol at 7.1 per cent, and diesel at 5 per cent.
India’s net oil and gas bill fell by 5 per cent in December to $9. 5 billion, whilst during April to December, the net oil and gas bill fell by 11. 7 per cent to $87. 7 billion, official data showed.
The country also imports liquefied natural gas and petroleum products such as liquefied petroleum gas, whilst exporting products such as diesel and petrol.
With liquid fuel consumption in India expected to increase by almost 0.3 million barrels per day in both 2026 and 2027, the nation’s energy security remains heavily dependent on international crude prices.
Lower import costs provide fiscal relief at a time when India continues to drive global oil demand growth.
