Middle East Crisis Drives Up Prices, Pushing India’s Crude Oil Import Bill Up by 46%
admin **Middle East Conflict Escalates India’s Crude Import Costs by 46%**
*By Tsvetana Paraskova*
Escalating conflicts in the Middle East and a sharp rise in international oil prices pushed India’s crude oil import bill to $15.4 billion in September—a 46% surge compared to the $10.5 billion spent during the same month last year.
According to data from the Petroleum Planning and Analysis Cell (PPAC) under the Oil Ministry, India, the world’s third-largest crude importer, registered a 7% year-over-year increase in import volumes for September. However, the financial burden increased disproportionately due to surging global prices.
The Indian crude basket—a price benchmark derived from a mix of Dated Brent (sweet grade) and the Oman/Dubai average (sour grade)—averaged $116.09 per barrel in September. This surpassed the previous peak of $114.48 per barrel recorded in April during major shipping disruptions in the Strait of Hormuz.
For the first half of the fiscal year (April to September), India spent $90.6 billion on crude imports, marking a 46.3% jump from $61.9 billion during the corresponding period last year. This spending increase occurred despite total import volumes remaining largely flat or slightly lower, underscoring that the spike is driven primarily by cost rather than quantity.
Geopolitical instability has severely impacted trade routes from the Middle East. Freight costs along the critical shipping lane from Ras Tanura in Saudi Arabia to Indian ports have tripled or quadrupled following regional hostilities and shipping restrictions through the Strait of Hormuz.
Preliminary data suggests India’s import expenses could rise further in October, as the average price for the Indian crude basket has reached $121.25 per barrel so far this month.
