India Oil Imports

Why India depends on imports

India is the world's third-largest oil consumer, but its own fields, mostly run by state-owned ONGC, produce only about 28 million tonnes a year (roughly 0.56 million b/d). Domestic output has drifted lower for a decade while demand has grown, so every rise in the Brent price feeds directly into India's trade deficit, inflation and the rupee. Product consumption was 241.6 million tonnes in FY2025-26, 1.0% more than a year earlier.

Top suppliers and the rise of Russian barrels

Before 2022 India bought most of its crude from Iraq, Saudi Arabia and the UAE, and Russia was a minor supplier. After Russia invaded Ukraine, discounted Urals and other Russian grades made Russia India's largest supplier. Two shocks then changed the mix again:

• Sanctions and tariffs, 2025. The US added a 25% tariff on Indian goods over Russian oil purchases in August 2025, and on 22 October 2025 the US Treasury sanctioned Rosneft and Lukoil. Indian refiners slowed purchases, and by February 2026 Russian imports had fallen to about 1.0–1.1 million b/d, with Gulf producers supplying 52% of India's crude, according to Kpler data.
• The Hormuz shock, 2026. About 40% of India's crude imports normally pass through the Strait of Hormuz. When shipping through the strait almost stopped from late February 2026, Iraqi supply to India nearly vanished for months. Refiners turned back to Russia: imports reached about 2 million b/d in March and a record of roughly 2.6–2.8 million b/d in June and July 2026, more than half of the total. Russian crude briefly sold at a premium to Brent. As Gulf flows partly recovered, Russian volumes eased to about 2.1 million b/d in August and an estimated 1.8–1.9 million b/d in September.

Saudi Arabia and the UAE kept some supply flowing through pipelines that bypass Hormuz; the UAE was India's second-largest supplier in June 2026. India also buys from the United States, West Africa and Latin America, including Brazil. Read more about Russia's side of the trade on the Russia oil production page.

Refining capacity

India has 22 refineries with a nameplate capacity of 258.1 million tonnes a year (about 5.2 million b/d) as of April 2026. They processed 272.0 million tonnes in FY2025-26, about 106% of nameplate. Reliance Industries' Jamnagar complex in Gujarat, at 68.2 million tonnes a year (about 1.4 million b/d), is the largest refining site in the world. Nayara Energy's Vadinar refinery, part-owned by Rosneft, adds 20 million tonnes. India is a net exporter of diesel and other products, so it imports crude partly to export fuels.

The state also holds about 5.33 million tonnes of crude in underground caverns at Visakhapatnam, Mangaluru and Padur through Indian Strategic Petroleum Reserves Ltd, roughly 9–10 days of consumption.

How the rupee affects oil costs

India pays for crude in US dollars, so the import cost in rupees depends on both the oil price and the exchange rate. The rupee averaged ₹84.57 per dollar in FY2024-25 and ₹88.31 in FY2025-26, then weakened to about ₹95.5 in May and August 2026. At $90 per barrel, a ₹5 fall in the rupee raises the cost of a barrel by ₹450. Use the calculator below with today's prices, or see the live crude oil price in INR.

Fuel prices and policy in 2026

Retail petrol and diesel prices in Delhi had been unchanged since October 2024, at ₹94.77 and ₹87.67 per litre. When crude spiked, the government first cut central excise duty in late March 2026, absorbing the cost without changing pump prices. From 15 May 2026 oil marketing companies raised prices in four steps, and since 25 May petrol has cost ₹102.12 and diesel ₹95.20 per litre in Delhi, according to PPAC's daily price data for 13 October 2026. LPG use fell sharply: it was down about 15% year on year in April–September 2026, while petrol demand rose 7%. To see how crude prices pass through to fuel and the wider economy, read what moves oil prices.