India’s crude oil import bill surged 48.4 per cent to $74.8 billion in the first five months of FY27, even though import volumes barely changed. Here is what is driving the spike and what it means for you.

According to the Petroleum Planning and Analysis Cell, India imported 100.7 million tonnes of crude between April and August, down 0.4 per cent from a year ago. Yet the bill jumped by $24.4 billion. The reason is price, not demand.

The Indian crude basket averaged $90.19 a barrel in August, up 30.5 per cent from a year earlier. On September 18, it touched $123.86 a barrel. Brent crude has stayed above $100 for weeks.

The main driver is the West Asia conflict, which began on February 28, 2026. It has disrupted shipments through the Strait of Hormuz, which carries about a fifth of global oil transit. Yemen’s Houthis have also threatened the Bab el-Mandeb Strait, a route India uses as an alternative.

The weak rupee adds to the pain, making every dollar-priced barrel costlier in rupees. High crude prices feed inflation, widen the trade deficit and can force fuel price revisions, affecting transport costs and household budgets.