Home / Economy / News / Hormuz crisis adds $22 bn to India's fossil fuel import costs: CREA

Hormuz crisis adds $22 bn to India's fossil fuel import costs: CREA

In terms of economic impact, India's net additional cost across all fossil fuels was estimated at $14.4 billion, equivalent to 0.38 per cent of its GDP, or about 1.4 days of national income

India incurred an estimated $22 billion in gross additional fossil-fuel import costs between March and August 2026, following the Hormuz crisis | Image: Bloomberg

Vrinda Goel New Delhi 6 min read Last Updated : Aug 28 2026 | 12:54 PM IST

India incurred an estimated $22 billion in gross additional fossil-fuel import costs between March and August 2026, following the energy-price shock triggered by the Hormuz crisis, making it the second-most affected importing country after China. According to an analysis by the Centre for Research on Energy and Clean Air (CREA), India's net additional cost for crude oil stood at $20.5 billion.

In terms of economic impact, India's net additional cost across all fossil fuels was estimated at $14.4 billion, equivalent to 0.38 per cent of its gross domestic product (GDP), or about 1.4 days of national income.

India's additional cost between March and August was the third-highest among major fossil-fuel importers, after the European Union at $78 billion and China at $35 billion, according to CREA's analysis of seaborne crude oil, oil products and liquefied natural gas (LNG). The figures measure the additional amount importers paid over what futures markets had expected before the strikes.

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