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India's dependence on imported fossil fuels came at an additional cost of $22.5 billion between March and August 2026 as the crisis around the Strait of Hormuz pushed international energy prices above levels expected before the conflict, according to the Centre for Research on Energy and Clean Air (CREA).

India recorded the second-highest additional fossil-fuel import cost among the countries studied by CREA. China faced the largest increase at $35.5 billion, while the US ranked third with an additional $16.5 billion, reported The Financial Express.

The Netherlands, South Korea, Italy and Japan followed, with their additional costs estimated at $13.5 billion, $13.2 billion, $12.7 billion and $12 billion, respectively.

Oil And Gas Price Shock Adds $330 Billion Globally

The impact has extended well beyond individual importing countries. CREA estimated that the disruption to energy markets and global shipping since the Hormuz crisis began on February 28 has added more than $330 billion to fossil-fuel import bills worldwide.

That amounts to an average additional cost of around $55 billion a month.

CREA described the episode as the biggest sustained fossil-fuel price shock since the 1990 Gulf War.

Its calculation compares the amount importing countries actually paid for seaborne crude, refined fuels and gas with the prices markets had expected before the conflict.

The estimate does not, however, include higher freight rates or war-risk insurance. Pipeline gas, coal, fuel oil and naphtha are also excluded from the calculation.

Refined Fuels Saw Steepest Price Increases

While crude oil accounted for the largest share of the additional bill, some refined fuels recorded sharper price increases.

Crude oil import costs globally were pushed up by $164 billion, with prices averaging 35 per cent above pre-conflict market expectations.

Diesel and gasoil prices were 59 per cent higher than expected, contributing $74 billion to the additional global cost. Gasoline prices rose 43 per cent, adding another $36 billion.

The impact was also visible in gas markets. LNG prices were 60 per cent above pre-war expectations in the Atlantic basin and 75 per cent higher in the Pacific, adding $38 billion to global import costs.

Jet fuel prices increased by 59 per cent, contributing a further $20 billion.

Diesel Premium Stayed Elevated

Diesel emerged as one of the more persistent sources of pressure during the crisis.

CREA's analysis of 170 countries found that 134 paid more for diesel than prices indicated by futures contracts before the conflict.

The diesel premium remained above 55 per cent in five of the six months covered by the analysis. It dropped to 43 per cent in June before climbing to 65 per cent in August.

Poorer Countries Took A Bigger Economic Hit

The additional cost was not evenly distributed across economies.

For low- and lower-middle-income countries, the increase in fossil-fuel import costs was equivalent to 1 per cent of their 2024 GDP, CREA said. For high-income countries, the corresponding burden was 0.45 per cent.

Luke Wickenden, energy analyst at CREA, said the ability to absorb higher energy costs varies significantly between economies.

“Across every fossil fuel product, this crisis is a multi-car pile-up, and where you land depends on what you’re driving,” Wickenden said.

He said wealthier countries could absorb higher prices more easily in the short term, while lower-income economies were more sensitive to energy price increases.

“Oil and gas prices have long proven to be an Achilles’ heel for both household finances and the global economy as a whole,” Wickenden said.

Clean Energy Helped Cut Import Exposure

The crisis also highlighted the role of clean-power capacity in reducing exposure to fossil-fuel price shocks.

CREA estimated that clean-power capacity added since 2020 helped importing countries avoid around $36 billion in coal, gas and oil imports during the first five months of the crisis.

Of this, $10.6 billion represented fossil-fuel imports that countries avoided specifically because they would otherwise have been subject to wartime price premiums.