Oil
Middle East crisis drives India oil import bill up by 46 percent
India faced a 46 percent surge in its September crude import expenditure due to Middle East conflicts and rising shipping expenses.
Key points
- India spent $15.4 billion on crude imports in September, up from $10.5 billion a year earlier.
- The Indian crude basket averaged $116.09 per barrel during the month.
- Freight rates along the Ras Tanura to India corridor tripled or quadrupled since the war began.
What happened
India experienced a significant increase in its expenditure for foreign crude oil during September, driven by escalating conflict in the Middle East and higher international prices. According to data from the Petroleum Planning and Analysis Cell cited by the Times of India, the country's import costs reached $15.4 billion, marking a 46 percent rise compared to $10.5 billion in the corresponding period of the previous year.
While inbound shipments grew by seven percent annually, the financial burden expanded rapidly. Government figures indicated that the reference price for the nation's purchases averaged $116.09 per barrel in September. This figure exceeded the $114.48 per barrel recorded in April when disruptions at the Strait of Hormuz reached a peak. Over the six-month period from April to September, cumulative expenditure rose by 46.3 percent to $90.6 billion, up from $61.9 billion a year prior, driven entirely by price growth rather than volume increases.
Operational challenges in key shipping lanes contributed to the financial pressure. Freight expenses along the route connecting Saudi Arabia's Persian Gulf to India multiplied significantly after hostilities commenced and the Strait of Hormuz experienced closures. Furthermore, government statistics show that October costs could surpass September levels as the average purchase price reached higher marks earlier in the month.
Why it matters
For energy markets and global investors, the situation highlights the vulnerability of major Asian economies to supply route disruptions in the Middle East. As the world's third-largest crude importer, India's increased expenditures reflect broader commodity market volatility. While Brent spot prices reached $126.55 per barrel on 14 October 2026 according to US Energy Information Administration data, such high reference values impact importing nations heavily. For net exporters and petroleum producers across Africa, elevated global benchmarks alter trade balances and highlight the strategic importance of secure maritime transit corridors for global energy security.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
13.1% of India’s merchandise exports were fuels in 2025Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
