India faced an additional $22 billion burden on its fossil fuel import bill in the six months following US-Israeli military actions against Iran. This significant increase positioned India as the world's second-highest payer of extra energy costs, surpassed only by China, which saw an additional $35.5 billion outflow.
According to a brief from the Centre for Research on Energy and Clean Air (CREA), the period between March and August 2026 witnessed a global surge in fossil fuel prices. Countries importing oil and gas collectively paid an extra $55 billion each month, marking the most substantial sustained price shock since the 1990 Gulf War.
Global Energy Costs Soar
The report detailed that crude oil alone accounted for a staggering $164 billion of the total additional global cost, fetching an average premium of 35% above pre-conflict market prices. However, refined fuels, which are crucial for daily consumption, experienced even higher proportional price increases.
- Diesel and Gasoil: Prices rose by 59%, adding $74 billion to global costs.
- Gasoline: Saw a 43% increase, contributing an extra $36 billion.
- Liquefied Natural Gas (LNG): Jumped 60% in the Atlantic basin and 75% in the Pacific, totaling an additional $38 billion.
- Jet Fuel: Increased by 59%, adding $20 billion.
Clean Energy Proves a Buffer Against Volatility
The CREA brief highlighted the crucial role of clean energy expansion in mitigating these economic shocks. Countries that invested in clean energy over the past five years collectively saved an estimated $36 billion in avoided fossil fuel imports during the first five months of the crisis alone. These savings were amplified as rising wartime prices made every tonne of coal or cubic meter of gas not purchased even more valuable.
Luke Wickenden, an Energy Analyst at CREA, emphasized the strategic importance of transitioning away from fossil fuels. "The best way to protect against high oil prices is to get off the black stuff as quickly as possible. Oil and gas prices have long proven to be an Achilles’ heel for both household finances and the global economy as a whole," Wickenden stated. He added that nations investing in clean energy after previous energy crises have already reaped billions in savings.
Beyond increasing clean power generation, the report also noted that electrification across key sectors like heating and transport is playing a vital role in reducing overall demand for volatile fossil fuels, further bolstering national energy security and economic resilience.