India’s Energy Import Bill Jumps 82% Due to High Oil Prices
Summary
India's oil and gas import bill soared 81.6% year-over-year to $18.7 billion in May as crude imports rose 7.5% and LNG imports jumped 16% month-on-month, driven by the shock loss of Middle East supply and the need to source more expensive non-Hormuz crude. The widened trade deficit has pressured India's current account and currency.
Market Impact
The data quantifies how supply disruptions in the Strait of Hormuz directly transmitted into India's macro position, widening the trade deficit and pressuring the rupee. The expected reopening of Hormuz and lower oil prices may help narrow the deficit going forward. This analysis is informational and avoids any directional trading claims.
Why It Matters
It shows how the Middle East conflict transmitted into India's macro through energy import costs, affecting trade balances and currency.
Key Points
- India paid $18.7 billion on oil and gas imports in May, up 81.6% from May 2025's $10.3 billion.
- Crude oil imports rose 7.5% and LNG imports jumped 16% month-on-month in May.
- The Strait of Hormuz disruption cut off over 40% of India's crude oil flows that passed through the strait.
- India was forced to source more expensive supply from producers outside the Hormuz route, compressing margins and widening the trade deficit.
Key Entities
Evidence
The country paid as much as $18.7 billion on oil and gas imports in May, up by 81.6% compared to the May 2025 energy import bill of $10.3 billion, the data showed.Supports: Supports the import-bill and year-over-year figures.
India's crude oil imports rose by 7.5%, and LNG imports jumped by 16% in May from the previous month, according to provisional data from the oil ministry compiled by Indian media.Supports: Supports the monthly volume changes.
Since the war began and cut off over 40% of India's crude oil flows (those that passed through the Strait of Hormuz), one of the highest-flying economies in Asia has seen its oil import bill soar, investors fleeing th...Supports: Supports the macro transmission channel.