High energy costs hit developing countries the hardest because they must spend a much larger portion of their national wealth to secure basic fuel supplies compared to wealthier nations. When global supplies tighten, rich countries drive up prices to meet their own energy needs, effectively pushing poorer nations out of the market, according to the authors of the newly released report.
“When supply tightens, the rich bid up prices to get the energy they need – and in doing so price out the poor.” The report also notes that “Poorer economies like Namibia, Thailand, and the DRC spend over 7% of GDP on fossil imports.”
This means that for many developing countries, buying oil and gas is not just expensive—it is an existential threat to their economies. While a wealthy country might be able to afford higher bills, a poorer nation often lacks the extra cash to compete when prices spike. As a result, these countries are forced to reduce their energy use, leading to fuel shortages and industrial shutdowns because they simply cannot outspend wealthier global competitors.
The report “The energy security fall-out: from fossil fuel fragility to electric independence” was published by the energy think tank Ember on March 18, 2026. It was prepared by a team of authors led by Daan Walter, Sam Butler-Sloss, and Dave Jones.
