September 16, 2026: The Indian crude oil basket has surged to $128.70 a barrel, its highest level since April, a move that has almost doubled the price India pays for crude since July 2 and carries significant implications for stocks, key sectors and the Reserve Bank of India’s policy stance.

Data showed the Indian crude oil basket stood at $128.70 at last count, a level not seen since April and almost double the $67.16 a barrel price recorded on July 2. Even at this elevated level, however, the current price remains below the $157.04 a barrel peak touched on March 23, indicating that while the recent trajectory has been sharply upward, crude prices have not yet reclaimed the extreme highs seen earlier in the year.

The Indian crude oil basket is a specific benchmark, published daily by the Petroleum Planning and Analysis Cell under the Ministry of Petroleum and Natural Gas, calculated as the weighted average of Oman and Dubai crude for the sour grade and Brent Dated for the sweet grade, currently blended in a ratio of roughly 75.62:24.38 based on the actual sour-to-sweet crude mix Indian refineries process. This makes it a more directly relevant gauge for India’s own import costs and inflation dynamics than international benchmarks like Brent or WTI alone, since it captures the specific blend and quality mix that Indian refineries actually process, and can move differently from Brent on any given day depending on regional supply conditions.

The near-doubling of the Indian crude oil basket since July 2 has direct and significant implications for India’s trade balance, given that the country imports the vast majority of its crude oil requirements. A sustained rise in the basket price widens India’s oil import bill in dollar terms, which in turn can pressure the current account deficit and add to depreciation pressure on the rupee, particularly when combined with other global factors such as a strengthening US dollar or elevated Treasury yields drawing capital away from emerging markets.

(Source: Uninvest)