# India’s oil import dependence crosses 90% in FY26 2026-08-20T16:17:15+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet India's crude oil import dependence has risen to over 90% in FY26, up from 55% in FY99, according to a report by EY. The sharp increase highlights the country's growing vulnerability to global oil price shocks and supply disruptions. The report notes that petroleum refining efficiency has improved by about 33% in FY26 compared to FY98. Meanwhile, the energy intensity of India's GDP, as well as the use of petroleum products in GDP, has declined over time, indicating some progress in energy efficiency. Strengthening energy security is critical to mitigating macroeconomic risks, the report says. The findings underscore the need for India to diversify energy sources and boost domestic production to reduce reliance on imports. ## Indian Opinion Analysis India's import dependence is now among the highest globally for a major economy, making it extremely sensitive to geopolitical events like the Ukraine war or OPEC production cuts. The refining efficiency gains are welcome but do little to reduce the underlying import bill, which directly impacts the current account deficit and rupee stability. With global energy transition uncertain, the government's push for renewable capacity and electric vehicles becomes a strategic necessity, not just an environmental goal. The next key signal will be the trajectory of domestic crude output from fields like Rajasthan and the success of ethanol blending targets. ## Coverage - ey.com Presents data on import dependence and efficiency without advocating a policy position. This story was synthesised by AI from the source linked above. Tags: crude oil, EY, import dependence, India Canonical: https://indianopinion.org/indias-oil-import-dependence-crosses-90-in-fy26/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/indias-oil-import-dependence-crosses-90-in-fy26/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/