India’s imports of crude and LNG jumped in May from April, as arrivals of non-Middle Eastern cargoes accelerated, and the country’s energy import bill soared by nearly 82% from a year earlier amid higher energy prices.
India’s crude oil imports rose by 7.5%, and LNG imports jumped by 16% in May from the previous month, according to provisional data from the oil ministry compiled by Indian media.
The country paid as much as $18.7 billion on oil and gas imports in May, up by 81.6% compared to the May 2025 energy import bill of $10.3 billion, the data showed.
The shock loss of supply from the Middle East widened India’s trade deficit in April by more than analysts had expected as the surge in oil and gas prices hiked the Indian energy import bill.
The value of imports soared as international oil and gas prices jumped amid the Middle East conflict that forced India and every other major crude oil importer to source more expensive supply from producers not dependent on the Strait of Hormuz.
The widening trade deficit and the soaring energy import bill started to pressure the government’s current account and finances, as the oil supply crisis began seeping through India’s economy.
Since the war began and cut off over 40% of India’s crude oil flows (those that passed through the Strait of Hormuz), one of the highest-flying economies in Asia has seen its oil import bill soar, investors fleeing the capital market, and the local currency plunging to an all-time low against the U.S. dollar.
Now the tentative U.S.-Iran deal and the expected drop in oil prices amid increasing flows from the Middle East are set to help narrow India’s trade deficit, which held at relatively high levels in April and May due to the crude price shock.
Going forward, a reopening of the Strait of Hormuz and softer oil prices would benefit India’s trade balances by slashing its crude import bill.
By Tsvetana Paraskova for Oilprice.com
