India’s Fossil Fuel Import Bill Rises By $22.5 Billion Amid Hormuz Crisis

India paid an additional $22.5 billion for fossil-fuel imports between March and August 2026 as the Hormuz crisis drove global oil and gas prices higher, according to a report by Financial Express citing the Centre for Research on Energy and Clean Air (CREA) data.

India was the second-most affected importing country after China, which incurred an additional $35.5 billion.

The US recorded an extra import cost of $16.5 billion, followed by the Netherlands at $13.5 billion, South Korea at $13.2 billion, Italy at $12.7 billion and Japan at $12 billion.

Oil and Gas Prices Drive Global Costs

The six-month disruption has increased global fossil-fuel import bills by more than $330 billion, equivalent to roughly $55 billion every month. CREA described the shock as the most prolonged fossil-fuel price surge since the 1990 Gulf War.

Crude oil accounted for the largest portion of the additional cost, at $164 billion, with prices averaging 35% above pre-crisis expectations. Diesel and gasoil prices were 59% higher, adding $74 billion, while gasoline prices rose 43%, increasing costs by another $36 billion.

LNG prices also remained elevated, rising 60% above expectations in the Atlantic basin and 75% in the Pacific, contributing $38 billion to global costs. Jet fuel prices increased 59%, adding another $20 billion.

Poorer Economies Face Greater Pressure

The impact has been particularly severe for lower-income countries. Low- and lower-middle-income economies paid an additional amount equivalent to 1% of their 2024 GDP because of higher fossil-fuel prices, compared with 0.45% for high-income nations.

CREA noted that 134 of the 170 countries examined paid more for diesel than pre-crisis futures had indicated. The diesel premium remained above 55% in five of the six months.

However, clean-energy investments have provided some relief. Renewable capacity added since 2020 helped importing countries avoid an estimated $36 billion in fossil-fuel imports during the first five months of the crisis, including $10.6 billion in avoided wartime price premiums.

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