India’s crude import bill dropped by 17 per cent to $50.4 billion in April–August FY26, compared with $60.7 billion a year earlier, according to the Petroleum Planning and Analysis Cell.

The country imported 101.1 million tonnes of crude, nearly unchanged from the previous year, but lower global prices and steep Russian discounts brought down costs. Imports accounted for 80.2 per cent of domestic demand as local production fell 2 per cent.

In August alone, India imported 19.6 million tonnes at a cost of $9.9 billion, down 15 per cent year-on-year. Analysts said Russian barrels remained $3–5 per barrel cheaper than Middle Eastern grades, helping refiners maintain margins and export competitiveness.

Despite narrowing discounts since 2022, Russian crude remains among the most economical sources for India, saving billions annually and supporting inflation management and refinery profitability.

Meanwhile, trade tensions loom after the US imposed a 25 per cent additional tariff on Indian goods over Russian crude purchases. Chief Economic Adviser V. Anantha Nageswaran expressed hope that the penal duty may be reduced as part of an interim bilateral trade deal under discussion.