India’s crude import bill declined by 13% to $71.2 billion during April-October of FY26, compared with $81.9 billion in the year-ago period thanks to lower prices, according to data from the government’s petroleum planning and analysis cell. The country imported 142.7 million tonnes of crude oil during April to October, up from 140.6 million tonnes in the same period of previous fiscal.
India’s reliance on crude oil imports increased to 80.2% during the period, up from 79.8% in April-October of 2024, amid rising demand. While the dependency increased, the country’s domestic production of oil declined marginally by 1.2% during the period at 16.5 million tonnes.
In October, the country imported 21.1 million tonnes of crude oil, against 19.9 million tonnes in the year-ago period. The import bill for last month stood at $10.3 billion, down 5% from $10.8 billion in the same period last year. The decline in the import bill can be attributed to lower crude oil prices during the period compared to last year coupled with discounted Russian barrels.
Although steep discounts on Urals seen in early 2022 have narrowed over time, Russian crude still ranks among the most economically attractive grades in India’s import portfolio. As per data from Centre for Research on Energy and Clean Air (CREA), the discount on Urals crude narrowed by 4% month-on-month in October averaging $4.92 per barrel below Brent as against $18-20 per barrel since the beginning of the Russia-Ukraine conflict.
In October, the average price of Russia’s Urals crude fell by 4% to $59 per barrel, remaining above the new price cap of $47.6 per barrel, CREA’s analysis showed. US President Donald Trump’s repeated claims that India has “substantially” curtailed its oil imports from Russia are yet to be borne out by data. India remained the second-largest buyer of Russian fossil fuels in October, importing these goods worth 3.1 billion euros, though the inward shipments were down from 3.6 billion euros in the previous month.
Crude imports from Russia recorded a 11% month-on-month increase, which corresponds closely to an 8% month-on-month increase in total imports, CREA said. The US last month imposed sanctions on Russia’s oil companies Lukoil and Rosneft that largely fund Moscow’s war against Ukraine. The sanctions mark a significant escalation and are poised to reshape India’s crude import strategy, as per analysts.
India, which imports roughly 90% of its crude needs, will face near-term disruption as these sanctions effectively turn the Russian oil molecule—at least from these two entities—into a sanctioned commodity, shifting the market dynamic from influence to enforcement, Kpler had said.
