Key facts
- India's crude oil import bill rose 48.4% to $74.8 billion in April-August.
- The increase was driven by soaring international oil prices, despite a 0.4% drop in import volumes.
- Total crude oil imports were 100.7 million metric tons in April-August, down from 101.1 million tons a year earlier.
- Reduced oil flows from the Middle East and high shipping risks in the Strait of Hormuz contributed to higher costs.
- Freight rates on the Ras Tanura to India route have increased by over 400% since February 28.
- India paid 60% more for crude oil imports in the April-June quarter compared to the same period last year.
India's expenditure on crude oil imports has significantly increased, with the bill for April to August rising by 48.4% to $74.8 billion compared to the same period last year. This surge is attributed to soaring international oil prices, exacerbated by reduced oil flows from the Middle East and heightened shipping risks in the Strait of Hormuz. Despite a marginal 0.4% decrease in import volumes to 100.7 million metric tons, the higher per-barrel cost led to the substantial rise in the import bill. Freight rates on the key route from Saudi Arabia to India have seen an increase of over 400% since late February. In the April-June quarter alone, India paid 60% more for its crude oil imports year-on-year. The average price for Indian crude oil imports this month has been $114.80 a barrel, with Brent crude prices recently hitting $100 per barrel.