India has emerged among the hardest hit nations in the Strait of Hormuz energy crisis. A recent study shows the country paid an extra $22 billion for crude and LPG imports between March and August 2026. After adjusting for export gains, the net loss was $14.4 billion, equal to 0.38% of GDP or nearly 1.4 days of national income.
The disruption followed US and Israeli strikes on Iran that unsettled global energy flows. Fossil fuel importers worldwide bore $330 billion in additional costs over six months. The European Union absorbed $78 billion, China $35 billion and India $22 billion. Prices surged sharply, with LNG in Asia rising 75%, Europe 60%, diesel 59% and crude oil 35% above pre-war expectations.
India’s crude oil imports alone cost $20.5 billion net. LPG imports fell 49% in March, while the US share of supplies rose from 8% to 32% by April. The extra LPG burden was estimated at $1.1 billion. Low-income countries paid twice as much relative to GDP compared to richer nations. Renewables helped avoid $36 billion in fossil fuel imports globally, with India among the beneficiaries.
The findings underline India’s vulnerability due to dependence on Gulf energy routes and highlight the urgent need for diversification and renewable investments.
