India's crude oil import bill drops 19% in January on softer global prices

India's crude oil import bill fell sharply in January as the Indian basket price averaged $63.08/bbl - $17 lower than last year - easing the country's overall energy burden

Despite a marginal drop of 0.2 per cent in volumes, India’s crude oil import bill declined by 18.8 per cent year-on-year (Y-o-Y) to $9.5 billion in January, driven by subdued oil prices, showed oil ministry data.

 

The fall came as the Indian basket crude price averaged $63.08 a barrel during the month, a significant drop of $17.12/bbl from $80.20/bbl recorded last year, according to data from Petroleum Planning and Analysis Cell (PPAC).

 

India purchased 21.1 million tonnes (Mt) of crude oil in January 2026, as against 21.2 Mt imported in the same month last year.

 

Crude oil prices have fallen dramatically over concerns of a potential supply glut, amid weak demand in the international market.

 

In the April-January period, India’s crude oil import bill declined 12 per cent to $100.4 billion from $114.1 billion last year.

 

Crude oil and petroleum products account for more than 20 per cent of the country’s overall import bill. Lower energy prices are a big positive for India as the country imports nearly 90 per cent of its crude oil requirements and almost 50 per cent of natural gas needs.

 

Besides crude oil, India also imports liquefied natural gas (LNG) and petroleum products such as liquefied petroleum gas (LPG), while exporting products such as diesel and petrol. Net oil and gas bill of India fell by 12.8 per cent Y-o-Y to $9.5 billion in January and 12 per cent Y-o-Y to $97 billion during April-January.

 

India’s LNG imports rose by 15.3 per cent in January from last year at 2,808 million standard cubic metre (Mscm) while Petroleum, Oil, and Lubricants (POL) product imports increased by 0.5 per cent Y-o-Y in the month.

 

POL exports decreased 10.3 per cent Y-o-Y in January, mainly due to lower exports of aviation turbine fuel, vacuum gasoil, and fuel oil, among others. 

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