India’s crude oil import bill during Q1 FY27 rose to almost $50 billion—the highest on record for the period—as the West Asia conflict disrupted supplies sending prices of the geo-politically sensitive commodity soaring in April.
The conflict in the Middle East Gulf (MEG) region, which began on February 28, 2026, is now considered the largest disruption in energy supplies in history.
According to the Petroleum Planning and Analysis Cell (PPAC), India’s imported roughly 60.48 million tonnes (mt) crude oil worth around $49.66 billion in April-June of FY27 (Provisionally), growing by 61 per cent from Q1 FY26 and 32 per cent from Q1 FY25. This is the highest for the April-June period in terms of value calculated in US Dollars.
One of the reasons behind the higher value in US Dollars is due to the weak Indian Rupee. India had procured a similar quantity in Q1 FY23 for around $47.88 billion.
During April 2026, the average price of crude oil (Indian Basket) was $114.48 per barrel (FOB), which fell to $106.23 a month later and $83.22 a barrel in June 2026. In July this year (till July 29), the average price is $81.11 a barrel.
The situation in West Asia continues to remain volatile with repeated recurrences of the conflict. On July 23, 2026, crude oil prices were $103.33 per barrel, which fell to $88.87 on July 29th.
India’s import dependence on crude oil during Q1 FY27 also stood at a record 89.1 per cent on a provisional basis, same as in Q1 FY26. Prior to this, India’s crude oil import dependency rose to an all time high record of 90 per cent during April 2025.
For the entire FY26 and FY25, the import dependence stood at 88.7 per cent and 88.3 per cent, respectively.
Prior to the West Asia crisis, crude oil prices (Indian basket) were $69 per barrel (February 2026) and increased to $136.68 during March 2026 and have continued to fluctuate due to various geopolitical and market factors.
CareEdge in its latest Markets Roundup said: “Global petroleum and liquid fuel output in June 2026 was about 10 million barrels per day (mb/d) lower than in the same period last year, largely due to production losses linked to the West Asia crisis.”
However, supply is expected to recover and move into surplus by January 2027, with the oil market projected to return to oversupply by Q3 FY27, it added.
Active rig count data also points to higher monthly additions, mainly in North America and Africa. Over the past few months, global oil markets have shown an ability to adjust trade flows quickly and moderate oil demand. That said, global oil markets remain dependent on evolving geopolitical situations and need monitoring, it emphasised.
Published on July 31, 2026
