India's average crude import price, measured by the Crude Oil FOB Price (the Indian basket of sweet and sour grades), reached $101.07 a barrel on Friday, according to the Petroleum Planning and Analysis Cell. This marks the first time the basket has exceeded $100 since May.
The basket, which averages Dated Brent and the Oman‑Dubai sour blend imported by Indian refineries, stood at $99.38 per barrel for September to date, up from $83 in June, $82 in July and $90 in August.
The rise follows a broader rally in international crude prices linked to renewed fighting between the United States and Iran, which has persisted for more than a week. Freight rates on the key Ras Tanura‑to‑India route have surged by more than 400% since the conflict began on Feb. 28, when Iran closed the Strait of Hormuz.
Higher freight costs and elevated oil prices have driven India's import bill sharply higher. The April‑June quarter saw a 60% increase in crude‑import spending compared with the same period a year earlier, despite slightly lower volumes. The July import bill was 41% higher than a year earlier, reflecting the combined impact of price spikes and shipping disruptions.
