RBI to Supply Daily Dollars to State Oil Firms Amid Crude Price Surge

The Reserve Bank of India will sell dollars to the three public‑sector oil marketing companies to cover their full daily import needs, a move announced on Oct 10 as crude prices climb. The decision aims to stop the firms from buying dollars on the spot market, which could push the rupee lower. RBI’s notification said the special window will meet the entire daily dollar requirement of Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited. Under the facility, the central bank will sell USD to the OMCs through designated banks. The window starts on Monday, Oct 12, 2026 and will stay in force until further notice. Estimates put the three firms’ daily dollar demand at about $300 million for crude purchases. RBI said it has ample reserves, having recently mobilised over $127 billion via FCNRB and an extra $9 billion through OFCB and ECB, while total forex reserves stand at roughly $735 billion. ## Context The RBI’s action reflects a common practice of using foreign‑exchange windows to stabilise the currency during periods of high import demand, especially for essential commodities like oil.