Same oil, $24 billion more: what $100 crude does to India

India imports about 88% of the crude oil it uses. So when oil gets expensive, the whole country gets a bill.

This year, that bill has been enormous.

Same oil, much bigger bill

Between April and August 2026, India imported 100.7 million tonnes of crude, a little less than the 101.1 million tonnes a year earlier. It paid $74.8 billion for it, up 48% from $50.4 billion. The extra $24 billion is almost entirely price.

Benchmark Brent crude crossed $100 a barrel in September and was at about $104 on 9 October, according to market data cited by Straits.live.

Why: the Strait of Hormuz

A large share of the oil and gas India buys comes from the Gulf through the Strait of Hormuz, a narrow channel between Iran and Oman. Conflict there in 2026 has made shipping dangerous: on 4 October, IMF PortWatch counted just 4 ship crossings, against about 85 a day before the crisis.

That's why the impact goes beyond petrol. India gets about 90% of its imported LPG, the gas in kitchen cylinders, from the region.

How oil reaches your wallet

• InflationFuel feeds into transport and the cost of almost everything that's moved by truck. The RBI now expects inflation to average almost 5.8% over the next three quarters.
• The rupeeOil is paid for in dollars. A bigger oil bill means more dollar demand, which weakens the rupee and makes all other imports dearer too. See how the Fed and FPI selling add to that.
• Interest ratesOil above $100 was one of the triggers for the RBI's rate hike on 7 October 2026.
• Government financesIf pump prices are held steady, oil companies or the government absorb the cost instead, leaving less for other spending.

What's softening the blow

Indians have been using less of some fuels: LPG consumption fell 16.8% in April–August, and total petroleum product use was down 3.9%, according to PPAC data. Domestic natural gas production rose 20%. But with domestic crude output still falling, import dependence isn't going away soon.