India's crude oil import bill surged 61.2% year-on-year to $49.8 billion in the April-June quarter despite a 4.5% decline in import volumes, as crude prices stayed above $100 a barrel amid the West Asia conflict.
Data from the Petroleum Planning and Analysis Cell (PPAC) showed that India imported 59.8 million tonnes of crude oil in the first quarter, down 4.5% from 62.6 million tonnes in the corresponding period last year.
Despite the decline in volumes, the import bill ballooned as benchmark crude prices stayed above $100 a barrel for much of the quarter amid the ongoing conflict in West Asia.
The higher import cost underscores the vulnerability of India's energy import bill to fluctuations in global crude prices, given that the country relies on imports for more than 85% of its oil requirements.
Liquefied Natural Gas (LNG) imports also reflected a similar trend. LNG supplies declined 8.6% year-on-year to 7,674 million standard cubic metres (MSCM) during the April-June period.
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However, the LNG import bill rose nearly 6% to $3.6 billion, as international gas prices remained elevated.
Meanwhile, imports of petroleum products witnessed a sharp contraction.
Volumes fell 42% year-on-year to 7.1 million tonnes, indicating lower overseas purchases of refined fuels during the quarter.
The latest PPAC data suggests that while India curtailed physical imports of crude and LNG, elevated international energy prices significantly inflated the country's import expenditure.
The trend could keep pressure on the trade deficit and fuel import costs if geopolitical tensions continue to support high global oil prices.
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