Crude oil import costs for India surged to an average of $120 per barrel in October 2026, marking the highest monthly level since March 2012. The spike follows geopolitical disruptions in the Middle East and Ukraine, driving up refining margins and corporate profits for energy giants even as consumers face mounting financial pressure.
Crude Import Costs Hit 14-Year High as India Faces Currency and Trade Pressures
The basket price of crude oil imported by India reached an average of $120.46 per barrel in October, according to reporting. That figure marks the highest monthly average recorded since March 2012. By October 26, the single-day crude price touched $123.72 per barrel.
Maritime freight charges and tanker insurance premiums escalated sharply amid the Middle East conflict, compounding the landed cost of energy. Brent crude closed Friday at $109.86, touching its highest mark since May 20, as noted by Yahoo. The sustained upward pressure on energy imports triggered a strain across domestic markets, pushing the Indian rupee down against the U.S. dollar.
Rating agency ICRA estimated that every $10 increase in crude oil prices widens India’s current account deficit by about 0.3 percent of GDP. During the first half of the financial year, the current account deficit widened. At the same time, state-run oil marketing companies absorbed heavy under-recoveries by holding retail fuel prices steady, according to economic coverage.
ExxonMobil and Chevron Post Record Profits Amid Global Refinery Constraints
While importing nations contend with soaring acquisition expenses, major Western energy corporations reported dramatic profit windfalls. Manorama Online reported that ExxonMobil doubled its third-quarter net income to $15.4 billion. The corporation capitalized on widening refining margins and full-capacity operations at its facilities in the United States and other key regions, offsetting production disruptions in the Middle East through output gains in Guyana and the Permian Basin.
Chevron similarly expanded its earnings. For the first time in six years, Chevron’s refining margin surpassed its upstream extraction revenue, driven by a global shortage of refinery capacity. Attacks on oil refineries in the Middle East and Russia have contributed to the global energy crisis.
October ending today, India's crude oil import bill has shot up further. Crude prices are elevated globally due to the fear of an imminent escalation in the Gulf war post the US Midterm elections on Nov 3rd.Oct 29th saw some lower pricing for the Indian crude basket, at $ 114… pic.twitter.com/9zs18Yi36G
Political Clashes Erupt Over Windfall Taxes and US Gas Prices
Sanders cited a Joint Economic Committee Minority brief indicating that more than 20 major oil and gas producers accumulated $125.2 billion in profits during the first half of 2026 alone. He argued that the average U.S. household became poorer as a result of the conflict, matching an estimate from Moody’s Analytics chief economist Mark Zandi putting total consumer costs at roughly $265 billion, reported Yahoo.
Tanker Freight Costs Surge as Gulf Exports Route Around Hormuz
Crude flows out of the Persian Gulf registered a temporary rebound even as prices remained elevated. In September, oil production by OPEC countries in the Gulf region was 1.58 crore barrels per day, which is about 75 percent of pre-war production, Thejas News reported.
However, alternative logistics drove operational expenses upward. War-related fears, low oil reserves, and increased transport and insurance costs are contributing to high crude oil prices. Commercial shipping disturbances reached a monthly peak in October with 32 recorded incidents in the United Kingdom Maritime Trade Operations registry.
No, Mr. Trump. America is not making “a fortune” off high gas prices, but your Big Oil pals are.The average U.S household got $2,000 poorer as a result of the Iran War, while Big Oil got $125 billion richer this year.End this war. Put a windfall profits tax on Big Oil.