India's oil and gas import bill drops 12% in Apr-Oct on softer crude prices

India saved on crude purchases as global prices fell, even with similar import volumes. The crude bill dropped 13% YoY to $71.2 billion in April-October, helping reduce the overall import bill

India's net oil and gas import bill slipped 12 per cent during the April-October period of the current financial year. This comes amid softening crude oil prices and declining natural gas demand, according to data sourced from Petroleum Planning and Analysis Cell (PPAC).

 

The net import bill for the two fell to $69.9 billion in the first seven months of FY26, from $75.9 billion in the same period last year. India meets around 90 per cent of its domestic crude oil requirements and roughly 50 per cent of its natural gas needs from imports.

 

India saved on purchases of crude oil despite importing almost similar volumes as crude oil prices plummeted this year. Crude oil bill fell 13 per cent during April-October to $71.2 billion, compared to $81.9 billion last year.

 

The Indian basket crude price averaged $65.08 per barrel during October 2025, as against $75.12/bbl last year. Crude prices have fallen this year with the Organisation of Petroleum Exporting Countries and its allies (Opec+) deciding to reverse production cuts, leading to a supply-demand imbalance in the global oil market.

 

In a recent report, the International Energy Agency (IEA) predicted an oil surplus of four million barrels per day (bpd) in 2026, almost four per cent of total global demand, as producers ramp up supplies while demand growth continues to slow down.

 

Meanwhile, India's liquefied natural gas (LNG) bill fell 13 per cent year-on-year (Y-o-Y) in FY26 so far due to decline in domestic consumption. LNG import bill was lower at $8 billion during the period, from $9.2 billion last year. The lower LNG bill, however, was on account of an 8 per cent decline in the gas consumption due to slightly higher prices and longer monsoon season this year.

 

Oil PSUs spending in FY26

 

India’s oil public sector undertakings (PSUs) have spent 53 per cent of their annual capital expenditure by October 2025, according to official data. This compares with 72.24 per cent of the annual capex spent during the same period (April-October) last year.

 

Out of the total annual target of ₹1.32 trillion, the companies have spent ₹70,990 crore during the period.

 

Oil PSUs have undertaken capital intensive projects this year with downstream companies working on expanding refinery capacity while upstream companies are extensively entering deep-water and ultra-deep water exploration.