Indian oil refiners are increasing petroleum exports to their highest levels in several years, Reuters reports. The report adds that India’s petroleum exports are driven by expanded crude processing capacity and increased domestic ethanol blending that has freed up fuel supplies for overseas markets
Indian petroleum refining companies, which source about a third of their crude oil from Russia, are boosting runs and redirecting surplus barrels abroad.
Reuters says that the rise in exports is expected to help meet Europe‘s winter heating oil demand and support Indian refining margins, after refiners turned to discounted Russian crude when Europe and the U.S. imposed sanctions on Moscow for its invasion of Ukraine in February 2022.
Meanwhile, the United States has accused India of profiteering by importing Russian oil at lower prices and reselling refined fuel at higher rates, causing major trade tensions between the two countries. India has maintained that its purchases have stabilised markets.
India’s total oil processing in 2025
This year, India’s crude processing is expected to increase by 130,000 to 160,000 barrels per day to about 5.51 million bpd, with gasoline exports hitting a record high of around 400,000 bpd, according to consultancy Wood Mackenzie.
An Indian refining source quoted by Reuters said exports are rising because of weaker domestic demand during the monsoon season and fewer scheduled maintenance outages.
Data provider Kpler pegs India’s 2025 gasoline exports at 387,000 bpd, mainly to Asia.
“The growth in gasoline exports is supported by a rising share of ethanol blending in domestic gasoline consumption,” Woodmac analyst Priti Mehta said.
The world’s second-biggest crude importer and consumer increased ethanol blending in gasoline to 20 per cent this year, up from 12 per cent in 2023.
Refiners, led by Reliance Industries and Mangalore Refinery and Petrochemicals Ltd, are boosting exports to capitalise on strong Asian gasoline margins, which have risen 51 per cent since the start of the year to about $11 to $12 a barrel.
India’s petroleum export to Europe
India’s gasoil exports are also expected to hit a four-year high this year, with most volumes heading to Europe to meet winter heating demand, the Report says
This is driven by a global supply that may tighten during the fourth quarter because of heavy refinery maintenance in Europe and the Middle East.
Wood Mackenzie expects India’s 2025 gasoil exports to reach 610,000-630,000 bpd, while Kpler’s forecast is at 560,000 bpd.