RBI to sell dollars directly to IOC, HPCL and BPCL for oil imports
From October 12, 2026, RBI will meet the entire daily dollar needs of the three state-owned oil marketing companies through a special window, until further notice.
Official title: RBI announces special window for Public Sector Oil Marketing Companies to meet dollar requirements · Press Release 2026-2027/1306
What happened
India imports most of its crude oil and pays for it in dollars. The three public sector oil marketing companies (OMCs), Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation, are among the biggest buyers of dollars in the currency market. Citing 'current market conditions', RBI will now sell them all the dollars they need each day, through one or more designated banks, instead of the companies buying them in the open market.
The window opened on Monday, October 12, 2026 and stays until further notice. The release gives no other reasons or amounts. For context, RBI's October 7 policy statements noted that crude prices jumped in September (the Indian basket averaged US$116.1 a barrel, up from US$82.0 in July) and that oil imports rose sharply. Taking the OMCs' large daily dollar demand out of the market means it does not add pressure on the rupee. It came the same day as RBI's new rules tightening currency hedging.
What it means for you
The release says nothing about petrol, diesel or LPG prices, which are set separately. Its likely effect is indirect: by easing pressure on the rupee, it can help keep the cost of imports, including fuel, from rising further because of a weaker currency.
What it means for businesses
IOC, HPCL and BPCL get assured dollar supply from RBI. Other importers may face somewhat less competition for dollars in the market, which can help steady the exchange rate. Banks that would normally sell dollars to the OMCs will see that flow move to RBI's designated bank or banks.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.