India’s Crude Oil Imports Surge 13% YoY in July 2026

India’s Crude Oil Imports Surge Amid Strong Refinery Demand

India’s crude oil imports have seen a significant increase, reflecting robust refinery operations and changing global supply dynamics.

Strong Demand Drives Import Growth

India’s crude oil imports averaged 5.1 million barrels per day (mb/d) in July 2026, marking a year-on-year increase of 596,000 barrels per day (tb/d), or approximately 13%. This surge is attributed to refinery runs that have consistently exceeded the five-year average for this period, indicating a strong demand for crude oil as refiners ramp up production to meet both domestic and export needs.

The month-on-month increase was also notable, with imports rising by 274 tb/d, or about 6%, from June 2026. This trend suggests that Indian refiners are capitalizing on favorable market conditions, including competitive pricing and a recovering global economy, which has led to increased consumption of petroleum products.

Russia Leads Supply Chain

In terms of sourcing, Russia has solidified its position as India’s largest crude supplier, accounting for 56% of total imports in July. This is a significant share, reflecting the geopolitical shifts and the ongoing energy partnerships between the two nations. The UAE and Saudi Arabia followed, contributing 9% and 8% respectively, while Oman, Venezuela, and Brazil each held a 4% share of the import market.

This diversification of supply sources is crucial for India as it seeks to enhance energy security and reduce dependence on any single supplier, particularly in light of fluctuating global oil prices and geopolitical tensions.

Product Imports Decline

While crude oil imports surged, India’s product imports faced a downturn, declining by 63 tb/d, or over 8%, month-on-month to average 693 tb/d in July. Year-on-year, product imports plummeted by 542 tb/d, or 44%. This decline can be attributed to constrained LPG imports, which have been affected by both domestic production challenges and international supply chain issues.

Conversely, fuel oil inflows improved, indicating a shift in the types of products being imported as refiners adjust to changing market demands. This mixed performance in product imports highlights the complexities of the global oil market and the need for India to navigate these challenges effectively.

Key Highlights

• Crude oil imports increased by 13% year-on-year in July 2026.
• Imports averaged 5.1 mb/d, with a month-on-month rise of 6%.
• Russia supplied 56% of India’s crude oil imports.
• Product imports fell by 44% year-on-year, reflecting supply constraints.
• Fuel oil inflows showed improvement amidst declining LPG imports.

Investor Note: The increase in crude oil imports signals a recovery in industrial activity and refinery operations in India. Investors should monitor how these trends impact domestic oil prices and the broader energy market, especially with the ongoing shifts in global supply dynamics.