India’s benchmark crude basket has climbed close to $100 a barrel amid renewed hostilities in West Asia, sharpening pressure on the country’s oil import bill even as global Brent prices remain below the Indian reference price.
The Indian Crude Basket stood at $99.35 a barrel on September 2, while the September average has risen to $97.32 a barrel, according to Petroleum Planning and Analysis Cell data. That is 7.9% higher than August’s $90.19 and 18.6% above July’s $82.04. The basket had averaged $114.48 in April before easing to $106.23 in May and $83.22 in June.
The rise comes as crude markets turn volatile again after fresh US military strikes along Iran’s southern coast and Iranian retaliation revived concerns over oil supplies from West Asia. Brent crude futures were up 59 cents, or 0.62%, at $96.22 a barrel at 1327 GMT, while WTI rose 78 cents, or 0.86%, to $91.79. Both benchmarks were heading for a fourth consecutive session of gains.
The latest Indian basket reading is more than $3 a barrel above Brent, underscoring that headline Brent prices do not fully capture the crude-cost environment relevant to Indian refiners. The Indian basket is a derived benchmark comprising sweet crude represented by Dated Brent and sour crude represented by the Oman-Dubai average.
Its composition also changes with the crude mix imported by Indian refineries. The sweet-to-sour ratio has shifted from 61.02:38.98 in April to 70:30 in May, 71.02:28.98 in June and 79.40:20.60 in July. It eased to 74.94:25.06 in August before moving to 77.81:22.19 for September, increasing the influence of Brent-linked sweet crude on the basket.
The escalation matters for India because nearly 90% of its oil requirement is imported. The country’s crude import bill was around $123 billion in FY26. In the first four months of FY27 alone, India imported crude worth $63.4 billion, more than half the previous full-year bill and 56.5% higher year-on-year.
The sensitivity is significant: a sustained increase of $1 a barrel for a year could add about Rs 18,000 crore to India’s annual crude import bill.
West Asia traditionally supplied around 60-65% of India’s crude imports, but flows have fallen sharply with disruption around the Strait of Hormuz. Refiners have diversified towards Russia, the US, Venezuela and other sources, though longer shipping routes and the characteristics of alternative crude grades can raise costs.
The pressure is being compounded by rising domestic consumption. PPAC data showed petrol demand in August rose 7.88% year-on-year to 3.82 million tonnes, while diesel consumption increased 6.46% to 7 million tonnes. During April-August, petrol and diesel demand grew 6.48% and 4.29%, respectively.
If elevated crude prices persist, a higher import bill could add to inflationary pressures, widen the current account deficit and weigh on growth. With the Indian basket again approaching the $100 mark, the duration of the West Asia disruption is emerging as a key risk for India’s energy costs and macroeconomic outlook.