India Imported Less Crude Oil in April, But Paid Much More

New Delhi: The actual problem for an energy-intensive economy like India is not so much the volume of crude oil it consumes as its cost. Global oil prices can easily increase even with slight rises, leading to higher inflation, a widening of the trade deficit, and a strain on government budgets. The new April crude imports data again confirms that fact.

While India bought less crude oil in April 2026 than the previous year, its crude oil import bill increased significantly due to high international crude prices. The figures are a testament to the ongoing fragility of big import-dependent economies in the face of geopolitical shocks and fluctuating energy prices.

Provisional data from the Petroleum Planning and Analysis Cell (PPAC) indicate that India imported 20.1 million tonnes of crude oil in April, as against 21 million tonnes in April 2025. The price of crude oil imports has, however, increased by over 50% from $10.7 billion in the corresponding period of the previous year to $16.3 billion.

The surge was mostly attributable to crude oil prices worldwide. With the exception of crude oil, prices for all components of the Indian crude basket rose on average in April compared with the previous year, reaching $114.48 per barrel from $67.72 per barrel a year ago. The figures reflect the ongoing importance of oil price fluctuations on India’s overall economic security in many aspects.

India is one of the most oil-dependent major economies in the world, with over 85% of its crude oil consumption imported. Even small rises in oil prices will impact household costs, logistics, manufacturing, and transportation throughout the country. Prolonged high crude prices put strain on most sectors of the economy.

The price hike this year has been closely correlated with geopolitical tensions in West Asia and disruptions to crucial shipping lanes, especially the Strait of Hormuz. Brent crude prices of nearly $100 a barrel for extended periods raised concerns about supply disruptions and their costs to major importing countries.

The significant feature is that the reduction in imports did not offset the increase in prices in India. The country was paying much more than it was getting in oil. This imbalance is already reflected in trade and inflation statistics.

India’s merchandise trade deficit rose to $28.38 billion in April from $20.67 billion in March, driven by soaring import prices for oil and commodities. The total value of imports rose to $71.94 billion in the month, a record high for the month. High energy prices are likely to continue to exacerbate the current account deficit and the rupee if oil prices do not decline in the coming months, economists say.

The inflation effect is also increasing. The wholesale price index increased to 8.3% in April, the highest level in over three years. Fuel and power prices rose significantly, and inflation in crude petroleum & natural gas was 88.06%. Retail prices so far have been relatively stable, but extended periods of high crude prices are “hard to sustain,” analysts said.

Meanwhile, India has been seeking to alleviate some of this pressure by diversifying its sources. In April, Russian crude was the main source of India’s oil imports, accounting for almost 1.6 million bpd. As cargoes from Russia have been cheaper, Indian refiners have steadily bought more of them over the past few years to offset higher global benchmarks.

Public sector companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) have been given more room to maneuver in the crude sourcing process, depending on price and freight economics. There is also a shift in sourcing tactics among private refiners, in line with refining margins and overseas market conditions.

However, lower sourcing costs can only be achieved to a certain extent when benchmark oil prices spike quickly in the international markets. The overall energy demand in India is also growing at a steady rate due to economic growth, increased mobility, and the expansion of aviation and industrial activities. An expanding car fleet, robust freight transport, and ongoing infrastructure development continue to facilitate increased fuel consumption.

But natural gas imports are also under pressure. India’s imports of liquefied natural gas (LNG) dropped by nearly 30% year-on-year to nearly 1,954 million metric standard cubic meters in April due to price increases and supply worries. Consumption of total natural gas was down 16.7% from last month to the same month of last year.

The April crude import data, in many respects, illustrates that India’s economic health continues to be linked to global commodity cycles. The nation has advanced efforts to invest in renewable energy sources, blend ethanol with gasoline, and introduce electric mobility; however, oil remains the primary fuel for transportation and industrial processes.

The Government has been taking steps to ensure long-term energy security through strategic petroleum reserves, cleaner-fuels initiatives, and diversification of energy sources. However, at present, the economy remains very volatile to international crude price changes.

The task for policymakers grows more complex. They have the responsibility of balancing the need to control inflation, grow the economy, maintain fiscal stability, and ensure energy security without threatening global markets with geopolitical risks. Higher crude prices eventually lead to increased transportation and input costs, as well as household budget pressures for business users and consumers.

The new import statistics are therefore more than just trade statistics. They point out that a small fall in import volumes could be eclipsed by price hikes for global energy supply shocks — something India is likely to be dealing with for the foreseeable future.