India’s Crude Basket Hits $101.07, a 6-Week High

Key Facts

India’s crude basket reached $101.07 per barrel on September 4, 2026, moving above $100 for the first time in 6 weeks and marking its highest level since July 23, according to India’s Petroleum Planning and Analysis Cell, or PPAC.

The basket is not the price of a single crude grade. It is a derived benchmark combining sweet Dated Brent with the average of sour Oman and Dubai crude processed by Indian refiners. It therefore indicates the direction of feedstock costs but does not necessarily equal the final price of every cargo India imports.

The September-to-date basket averaged $99.38 per barrel, compared with $90.19 in August. The comparison shows that cost pressure increased during the month, even though the monthly average remained below the $101.07 reading recorded on September 4.

The rise coincided with renewed US-Iran hostilities and increased risks to supply and shipping through the Strait of Hormuz. Those conditions can add a risk premium to oil markets, but they are better described as upward pressure than as the sole proven cause of the entire move.

For India’s fuel retailers, a sustained increase in crude costs can squeeze petrol and diesel marketing margins when pump prices do not rise at the same pace. Realized costs also depend on freight, insurance, the rupee and refined-product prices.

What happens next will depend on PPAC’s daily readings, the direction of Dated Brent, Oman and Dubai crude, and shipping conditions around the Strait of Hormuz. The story is not linked to a pending Israeli rate decision: the Bank of Israel’s latest decision was issued on September 1, 2026, not September 7.