India’s oil import expenditure increased sharply during April-May, rising 70% to $35.5 billion as higher global crude prices pushed up the country’s energy costs. The surge reflects the impact of elevated crude prices on India’s import-dependent energy sector.
The rise in import spending comes despite efforts to manage energy costs through diversified sourcing and strategic reserves. Strong domestic demand for transportation fuels and industrial energy has continued to support crude import volumes.
Global oil market volatility, driven by geopolitical uncertainties and supply concerns, has added pressure on import bills. Higher crude prices could impact India’s trade balance and increase cost pressures across fuel-intensive industries.
Energy analysts said continued fluctuations in international crude markets will remain a key factor influencing India’s import expenses, inflation outlook, and overall economic planning.