$330 Billion Fossil Fuel Price Shock Hits Economies Worldwide

Fossil fuel import bills have surged over $330 billion in six months since the Hormuz crisis began, making it the largest sustained price shock since the 1990 Gulf War, according to a report by the Centre for Research on Energy and Clean Air (CREA).

The research found that countries importing fossil fuels have incurred more than $55 billion a month in additional costs on average, with crude oil accounting for $164 billion of the increase. Refined fuels recorded even sharper rises, with diesel prices increasing by 59% and gasoline by 43%. Liquefied natural gas (LNG) prices rose 60% in the Atlantic basin and 75% in the Pacific.

The analysis covers 170 countries and excludes pipeline gas, coal, fuel oil, naphtha, freight, and war-risk insurance. CREA said the estimate is conservative because it reflects the volumes importers actually purchased and does not count demand lost due to higher prices or the cost of going without fuel.

The report highlights that poorer economies have been hit particularly hard by the crisis, with low- and lower-middle-income countries paying an additional 1% of their 2024 gross domestic product (GDP) on higher fossil fuel costs. India was the second-largest payer among the 170 countries analyzed, incurring an additional $22.5 billion in fossil fuel import costs between March and August 2026.