How a Stronger Dollar Affects Fuel, Food Oil and Phones in India

The dollar is now worth about 96 rupees.

It was around 90 this January. Now, some of you might think, So how does this affect me?

When am I ever going to America? If you think the same way, then look at your kitchen, petrol pump, and mobile phone.

This reel is for you, because the dollar is connected to all three.

And there’s also a group of people for whom this is good news.

In 2025–26, India bought 88.7% of its crude oil requirements from abroad.

That’s a record, and this oil is bought in dollars.

Say a barrel of crude oil costs 100 dollars.

Now, if a dollar is worth 90 rupees, that comes to 9,000 rupees.

But if the dollar rises to 96 rupees, that same barrel will cost 9,600 rupees.

Even if oil prices don’t rise worldwide, the Indian importer’s expenses have still gone up by 600 rupees per barrel.

This directly raises petrol and diesel prices.

And when diesel prices rise, the truck hauling vegetables from farm to market to shop, charges more for freight, too.

Second, look in your kitchen. It’s not just car fuel.

India also imports a large amount of cooking oil.

In 2023–24, around 56% of our needs were met through imports.

So whether it’s palm oil or sunflower oil, even if their international prices stay the same, the weak rupee still means their import costs go up.

Interestingly, this also affects your Made in India mobile phone.

About 99% of phones sold in India are assembled right here in India.

The box proudly says, “Made in India.” But according to the government’s own Electronics and IT Secretary, only around 22 to 23% of the phone’s total value This is where India comes in.

That means most things, like chips and memory, that are used to make the phone, come from outside India.

So the label says “Made in India,” but most of the bill is paid in dollars.

That’s why, in the first six months of 2026, phones became 16% more expensive on average.

Even without going to America, you still take quite a hit when the rupee weakens.

But now this same thing works in reverse for people who send money home from abroad.

In January, 100 dollars were worth about 9,000 rupees.

Today, they’re worth about 9,600. So, for the same dollars, families can get more rupees.

If you live in the US, Canada, the UK, or Europe and send money to your family in India, look beyond just fees, you must also check exchange rates.

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You can find the link in the bio.