The Reserve Bank of India (RBI) has opened a special facility to meet the entire daily US dollar requirements of three public sector oil marketing companies (OMCs), in a move aimed at easing pressure on the Indian rupee. The facility will take effect on October 12, 2026, and remain available until further notice.

Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are eligible to use the arrangement. Under the facility, the RBI will sell US dollars to the three companies through designated banks, allowing them to meet their oil-import payments without sourcing the full requirement from the open market.

The measure comes as state-run refiners face higher foreign-currency needs for crude oil purchases. In the usual market process, OMCs buy dollars by converting rupees in the foreign-exchange market before settling payments with overseas suppliers. Redirecting this demand through designated banks could reduce the immediate pressure on the rupee and improve market liquidity.

The three companies account for about 90 per cent of domestic petroleum-product sales, according to figures cited by market analyst Sandeep Pandey. Indian Oil Corporation accounts for about 40 per cent, Bharat Petroleum Corporation for 30 per cent and Hindustan Petroleum Corporation for 20 per cent, giving the facility coverage across most of the state-run oil-marketing network.

The government’s ability to provide the additional dollars could draw on foreign-currency resources, including funds raised through foreign-currency non-resident bonds and deposit swaps, according to market expert Anuj Gupta. The RBI has not specified a separate limit for the facility, and its continuation will depend on market conditions and further official decisions. The arrangement is intended to support orderly foreign-exchange access for essential oil imports rather than directly determine the rupee’s broader direction.