Crude oil prices have always had a strong impact on the value of the Indian rupee. As geopolitical tensions push global oil prices higher, the rupee weakens against the dollar. This creates a double disadvantage for India’s import bill — rising crude prices combined with a depreciating rupee sharply inflate the cost of oil imports, delivering a compounded blow to the country’s energy expenditure. As a snowball effect, the oil trade deficit is likely to widen further, with soaring imports continuing to outpace export earnings. With no sufficient exports to absorb the shock, the cost now lands at the fuel station — and retail petrol prices, which had been steady for a long time, are now beginning to rise.Published on June 2, 2026