6 days ago
Hormuz Crisis Adds $22.5 Billion to India’s Fossil-Fuel Bill
The Hormuz crisis made oil and gas more expensive around the world.
Countries that import fuel had to spend much more money.
India paid about $22.5 billion extra between March and August 2026.
China paid even more, with an additional cost of $35.5 billion.
Altogether, the crisis added more than $330 billion to global fuel bills.
Crude oil, diesel, gasoline, gas and jet fuel all became more expensive.
Poorer countries felt the increase more because fuel costs take up a larger share of their economies.
The Centre for Research on Energy and Clean Air called it the longest major fossil-fuel price shock since the 1990 Gulf War.
Clean-power capacity added since 2020 helped countries avoid an estimated $36 billion in fossil-fuel imports during the first five months.
India paid an estimated $22.5 billion extra for fossil-fuel imports from March through August 2026.
China had the largest additional cost at $35.5 billion, followed by India and the United States at $16.5 billion.
The six-month crisis added more than $330 billion to global fossil-fuel import bills, according to the Centre for Research on Energy and Clean Air.
Crude oil accounted for $164 billion of the increase, while diesel and gasoil added $74 billion and gasoline added $36 billion.
Lower-income economies faced an extra fossil-fuel burden equal to 1% of 2024 GDP, compared with 0.45% for high-income economies.
- Who
- Fuel-importing countries, especially India and China, were affected; the Centre for Research on Energy and Clean Air produced the estimate.
- What
- The Hormuz crisis raised fossil-fuel prices and added more than $330 billion to global import bills, including $22.5 billion for India.
- Where
- The impact was global, affecting seaborne fossil-fuel imports and energy markets.
- When
- The crisis began on February 28, 2026; India’s reported additional cost covers March through August 2026.
- Why
- Disruptions to global shipping and energy markets pushed oil, gas and refined-fuel prices above pre-crisis expectations.
Key facts
- India’s additional cost
- $22.5 billion between March and August 2026
- Global additional cost
- More than $330 billion over six months, or roughly $55 billion per month
- Largest country impact
- China, with an additional $35.5 billion
- Crude-oil increase
- $164 billion in additional global costs; prices averaged 35% above pre-crisis expectations
- Diesel and gasoil increase
- $74 billion in additional costs; prices were 59% higher
- LNG increase
- $38 billion in additional global costs; prices rose 60% in the Atlantic basin and 75% in the Pacific
- Clean-power savings
- An estimated $36 billion in avoided coal, gas and oil imports during the first five months
Quotes
Luke Wickenden
Energy analyst at the Centre for Research on Energy and Clean Air
“Oil and gas prices have long proven to be an Achilles’ heel for both household finances and the global economy as a whole.”
financialexpress.com
“Across every fossil fuel product, this crisis is a multi-car pile-up, and where you land depends on what you’re driving.”
financialexpress.com
Sources
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