After a decade of relative stability, the Indian basket crude price surged from $60–$70 per barrel in 2025 to $110 in March–April 2026. The surge followed escalating Middle East tensions that tightened global supply chains. India's Ministry of Petroleum and Natural Gas reported that the sharp rise forced the government to rethink its import strategy.
Russian crude rose from 33.7% of imports in April–June 2025 to 40.9% a year later, while purchases from the UAE, Venezuela, Oman and Brazil climbed. Meanwhile, imports from Iraq and the United States fell sharply, reflecting a deliberate pivot toward more reliable suppliers.
Domestic fuel demand, however, did not collapse. Petrol and diesel sales grew despite higher crude costs, showing mobility remained largely intact. In contrast, LPG, kerosene and naphtha usage fell, indicating a shift toward lower‑cost fuels.
Piped gas and compressed natural gas for vehicles saw a 26% jump in April–June 2026, according to City Gas Distribution. Household consumption remained stable, and fertilizer usage did not waver, underscoring that essential services were shielded.
Industrial gas use, however, was the most affected. Petrochemical consumption dropped 48%, industrial applications fell 31%, and the power sector cut 21%. The data show that industry absorbed the shock while households and transport retained resilience.
With prices still hovering above $130, the government is preparing a new tariff review scheduled for October, while the Ministry plans to negotiate forward‑purchase agreements to lock in cheaper supplies.