Archive · 27 Aug 2026
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.
- When
- The crisis began on February 28, 2026; India’s reported additional cost covers March through August 2026.
- Where
- The impact was global, affecting seaborne fossil-fuel imports and energy markets.
- Why
- Disruptions to global shipping and energy markets pushed oil, gas and refined-fuel prices above pre-crisis expectations.
- 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
