India’s Crude Oil Imports Hit 18-Month Low in July

India’s crude oil imports dropped to an 18-month low in July 2025, falling 8.7% month-on-month to 18.56 million metric tons, the lowest level since February 2024, as per data released by the Petroleum Planning and Analysis Cell (PPAC). This decline reflects a combination of weaker domestic fuel demand, geopolitical trade tensions, and changing procurement patterns, particularly around Russian oil.

Key Import and Consumption Data

Decline in Crude and Product Imports

• Month-on-month fall: Crude imports fell 8.7%
• Year-on-year drop: Crude imports down 4.3% from 19.40 million tons (July 2024)
• Oil product imports: Declined 12.8% YoY to 4.31 million tons
• Oil product exports: Dropped 2.1% to 5.02 million tons
• Fuel consumption: Fell 4.3% MoM to 19.43 million tons

This downturn in both imports and domestic consumption points to a broad slowdown in petroleum sector activity during the month.

Geopolitical and Trade Factors at Play

U.S. Tariff Threats on Russian Oil

India’s reduction in crude imports coincides with rising pressure from the United States, which is set to impose additional tariffs up to 50% on Indian goods from August 27, citing India’s continued purchase of Russian oil.

• Existing tariff: 25% already imposed on Indian exports
• India’s position: Trade Minister Piyush Goyal stated that India will approach its U.S. trade relationship with a “very open mind”

Despite the looming tariffs, Indian refiners such as Indian Oil and Bharat Petroleum have resumed buying discounted Russian oil for delivery in September and October, attracted by widened price benefits.