Global energy price decline can reduce India’s Oil and Gas import bill by Rs 1.8 lakh crore: ICRA
India, being an importer of crude oil and liquefied natural gas (LNG), would gain a lot by falling energy prices across the world. According to a recent ICRA analysis, if crude prices continue to hover around USD 60–70 per barrel till FY26, India would save an approximate Rs 1.8 lakh crore worth of oil imports whereas on the import of LNG Rs 6,000 crore could be saved.
India spent over USD 242 billion on crude oil and USD 15.2 billion on LNG imports in the current financial year. However, international oil prices, which recently touched a four-year low of USD 60.23 per barrel amid supply concerns and subdued demand, have since edged up to USD 62.4, though still well below March 2024 levels.
ICRA’s report highlights that while these lower prices may trim upstream oil companies’ pre-tax earnings by ₹25,000 crore in FY26, capital investment plans are likely to stay on track. For oil marketing companies, the scenario looks favourable, with robust auto-fuel marketing margins and reduced LPG under-recoveries expected to support profitability.
The report also points to possible inventory losses for refiners due to falling crude prices, alongside the risk of further excise duty hikes after a Rs2 per litre increase in April 2025.
