India's oil imports climb 7% as import bills surge on price pressures

India's crude oil imports rose 7 percent in September, underlining continued robust demand from Asia's third-largest economy despite global economic headwinds. However, the volume gains were overshadowed by a steeper 47 percent surge in the country's crude oil import bill, reflecting elevated international petroleum prices.

The sharp divergence between import volumes and costs highlights the pressure building on India's energy sector from volatile global oil markets. While domestic refineries expanded purchases to meet consumption demand, they faced significantly higher per-barrel costs, amplifying expenditure on one of the country's largest import categories.

Broader energy import spending painted an even starker picture. India's combined outlay on oil and gas imports climbed approximately 40 percent to $13.4 billion in September, a substantial increase that weighs on the nation's current account and foreign exchange reserves. The elevated import bill reflects both increased volumes and price premiums across energy commodities.

The September data underscores India's vulnerability to external energy price shocks as the country remains heavily dependent on crude imports to fuel its growing economy. Policymakers face continued pressure to balance energy security requirements against mounting import costs that strain the broader trade balance.