The India energy import bill surged in May 2026 as higher global oil and gas prices pushed up the cost of crude oil and LNG purchases. Rising imports and supply disruptions in the Middle East also added pressure on the country’s trade balance.
Crude and LNG Imports Increase
India’s crude oil imports rose by 7.5% in May from April, according to provisional data from the oil ministry. LNG imports also increased by 16% during the month as buyers secured additional cargoes from suppliers outside the Middle East.
The increase in imports came after supply disruptions forced India to diversify its energy sources.
Energy Import Bill Hits $18.7 Billion
India spent $18.7 billion on crude oil and natural gas imports in May. The figure was 81.6% higher than the $10.3 billion recorded in May 2025.
Higher international energy prices drove the sharp increase in import costs. The conflict in the Middle East reduced available supplies and forced major importers to purchase more expensive cargoes from alternative producers.
Strait of Hormuz Disruptions Raise Costs
The Middle East conflict affected energy shipments through the Strait of Hormuz, one of the world’s most important oil transport routes.
More than 40% of India’s crude oil supplies normally pass through the waterway. Supply disruptions forced refiners to seek replacement cargoes at higher prices, increasing the overall import bill.
Trade Deficit Comes Under Pressure
The higher India energy import bill widened the country’s trade deficit during April and May. Rising oil and gas costs also increased pressure on government finances and the current account balance.
The energy price shock affected financial markets as well. Higher import costs contributed to capital outflows and pushed the Indian rupee to record lows against the US dollar.
Lower Oil Prices Could Bring Relief
Market conditions may improve in the coming months. The tentative US-Iran agreement and the expected reopening of the Strait of Hormuz could increase Middle Eastern oil supplies and reduce global energy prices.
Lower crude and LNG prices would help India reduce its import costs and narrow the trade deficit. Improved energy flows could also strengthen the country’s economic outlook and ease pressure on the current account.
The recent surge in the India energy import bill highlights the importance of diversified energy supplies and stable global trade routes for one of the world’s fastest-growing energy markets.
