Crude Import Expenses Decreased by 17% in April
India’s Crude Oil Import Costs Decline Significantly
In April of the financial year 2026, India’s expenditure on crude oil imports plummeted by 17% to $10.8 billion, down from $13 billion in the same month last year, as reported by the government’s Petroleum Planning and Analysis Cell.
Russian oil dominated these imports, accounting for a substantial 40% share, largely attributed to its competitive pricing. The total volume of crude oil imported by India reached 21.2 million tonnes in April, reflecting a slight year-over-year drop of 1%. Interestingly, the nation’s dependence on crude oil imports escalated to 90%, compared to 88.5% in April 2024, driven by a surge in demand.
Despite the U.S. sanctions, April marked a peak in India’s Russian oil imports, the highest since May 2023, thanks to attractive free-on-board discounts relative to West African and West Asian oils, according to global analytics firm Kpler. Import volumes from Russia surged to an estimated 2.1 million barrels per day in April alone, increasing the country’s share of Indian imports from 39% the previous year.
Even accounting for longer shipping distances and reliance on shadow fleets, Russian oil remains price-competitive, being $3 to $8 per barrel cheaper than its West Asian or U.S. counterparts on a landed cost basis, as per analysts. While Russia retains its status as India’s leading oil supplier, numerous Indian oil and gas companies are beginning to explore alternative supply sources, particularly from the U.S., amidst ongoing global uncertainties and persistent U.S. sanctions against Russia. However, analysts caution that anticipated declines in U.S. oil production could inhibit India’s plans to boost imports from that region.
Amid a decline in global oil demand and uncertain trade conditions affecting the U.S., prospects for oil production growth in the U.S. may face obstacles later this year, potentially resulting in an annual output reduction in 2026, according to research from S&P Global Commodity Insights.
Additionally, India is progressively increasing its importation of Brazilian oil grades such as Tupi and Búzios, which offer cost advantages and align well with domestic refining requirements. Currently, India relies on foreign sources for 88% of its crude oil and 50% of its natural gas consumption. In an effort to lessen this dependency, the government is placing significant emphasis on enhancing domestic production and exploration.
Recent changes to the Oilfields (Regulation and Development) Act of 1948 are expected to stimulate greater involvement from both domestic and international stakeholders. These amendments expand the definition of mineral oils to encompass various naturally occurring hydrocarbons, including coal-bed methane and oil shale.
Significantly, a consortium comprising state-owned Oil and Natural Gas Corporation (ONGC), Reliance Industries, and global energy giant bp secured an offshore oil block off the coast of Gujarat during the ninth bidding round under the open acreage licensing policy. ONGC emerged victorious in the majority of the bids, claiming 11 blocks on its own, along with four in conjunction with partners, while Vedanta’s Cairn Oil and Gas successfully acquired seven blocks, highlighting a growing trend of private sector engagement in India’s oil sphere.
