India’s crude basket averaged $120.46 a barrel through October 26, 2026, up from $116.77 in September and on course for its highest monthly average since March 2012. The daily basket price stood at $123.72 on October 26.
Key Takeaways
- The October average was the highest since the $123.61 recorded in March 2012.
- India’s net oil and gas import bill rose 35% year on year to $81.1 billion in April–September FY27.
- Freight rates and marine insurance premiums have added pressure as the West Asia conflict disrupts the oil market.
India’s crude basket rises as freight costs climb
The October average was also well above August’s $90.19 a barrel. The figures for October cover the month through October 26 rather than the full month.
The conflict in West Asia has increased geopolitical uncertainty, while analysts and refiners say high shipping freight rates and marine insurance premiums are adding volatility to crude prices. A weaker rupee against the US dollar also raises the cost of imports.
Global crude prices were higher on the evening of October 27. Brent traded at $114.6 a barrel, with West Texas Intermediate and Murban also above $100.
| Item | Details |
|---|---|
| Brent | $114.6 per barrel on the evening of October 27 |
| West Texas Intermediate | $100.9 per barrel on the evening of October 27 |
| Murban | $117.7 per barrel on the evening of October 27 |
Import bill and refiner margins face pressure
India’s net oil and gas import bill reached $81.1 billion in April–September FY27. The country’s current account deficit was $11.2 billion in April–July FY27, compared with $6.6 billion a year earlier.
Ratings agency ICRA estimates that a $10-a-barrel increase in the average crude price over a fiscal year raises net oil imports by about $12 billion to $13 billion and widens the current account deficit by 0.3% of GDP. That is an estimate of sensitivity, not a forecast of the final annual bill.
Hindustan Petroleum and Bharat Petroleum’s second-quarter FY27 results showed pressure on marketing margins, partly offset by stronger refinery margins. Under-recoveries on LPG for the three state-owned oil marketing companies were around ₹62,000 crore.
Next milestone
Indian Oil is scheduled to present its results on Friday, October 30.
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