India faces $70 billion jump in oil import costs as prices surge

India’s oil import bill could rise sharply in 2026, potentially increasing by around $70 billion if elevated global crude prices persist amid escalating tensions in the Middle East, The Economic Times reports.

According to analysts, India currently imports approximately 4.3 million barrels of oil per day and already spends about $180 billion annually on energy imports. If prevailing price trends continue, a substantial increase in import costs may become unavoidable.

Experts identify the situation around the Strait of Hormuz as a key risk factor, noting that a significant share of global oil shipments passes through the waterway. Any further escalation in the region could constrain supply and keep prices elevated even in the event of partial stabilization of the conflict.

The report further warns that rising oil prices could fuel inflation in India, dampen consumption, and slow industrial output. In response, the country is expected to further diversify its energy imports by increasing purchases from the United States, Russia, Norway, and other suppliers.

By Vafa Guliyeva