India incurred an estimated $22 billion in additional fossil-fuel import costs between March and August 2026 as the energy-price shock triggered by the Strait of Hormuz crisis pushed international prices well above pre-conflict expectations, according to an analysis by the Centre for Research on Energy and Clean Air (CREA).
India was the second-most affected fossil-fuel importing country after China in terms of gross additional costs. The estimate covers seaborne crude oil, oil products and liquefied natural gas (LNG). On a net basis, after accounting for the economic impact, India’s additional fossil-fuel cost was estimated at $14.4 billion, equivalent to around 0.38% of GDP.
Crude oil accounted for the largest share of India’s additional burden, with the country’s net extra crude import cost estimated at $20.5 billion. Globally, fossil-fuel importers faced an additional $330 billion in costs during the six-month period, with crude oil, diesel and gasoil, LNG and gasoline among the biggest contributors.
The disruption to energy flows through Hormuz triggered a sustained rise in crude prices. Brent crude averaged around $93 per barrel between March and August, while prices remained above their pre-strike level on 94% of trading days, CREA said.
The sharp increase highlights India’s exposure to disruptions along the strategic waterway, which handles a significant share of global oil and gas shipments. Continued uncertainty around Hormuz is also encouraging energy importers to diversify supply sources and seek alternative routes.