The Indian Basket of crude oil—a weighted average of sweet and sour grades—reached $101.07 per barrel last Friday, according to data from the Petroleum Planning and Analysis Cell. This climb marks a sharp departure from earlier summer averages, which sat at $83 in June and $82 in July before reaching $90 in August. The September average currently tracks at $99.38, reflecting the immediate impact of regional volatility on global supply chains.

Financial pressure is compounded by soaring transit costs. Freight rates for shipments from Saudi Arabia’s Ras Tanura terminal to Indian ports have spiked by over 400% since the closure of the Strait of Hormuz. Consequently, India’s import bill surged 60% during the April-June quarter compared to the previous year. Even as import volumes remain steady or slightly lower, the combined weight of high spot prices and logistical premiums continues to drain reserves at an unsustainable pace.