Indian oil refiners are ramping up petroleum exports to their highest levels in several years, according to a Reuters report, driven by expanded crude
processing capacity, robust margins, and rising ethanol blending that has freed up domestic fuel supplies for international markets. Russian Oil at the Core of Export Boom India, the world’s second-largest crude importer, sources roughly one-third of its oil from Russia. Refiners, led by Reliance Industries and Mangalore Refinery and Petrochemicals Ltd (MRPL), are boosting crude runs to take advantage of discounted Russian barrels, redirected from Europe following Western sanctions imposed on Moscow after its 2022 invasion of Ukraine. While the United States has accused India of “profiteering” by reselling refined products made from cheap Russian crude at higher prices, New Delhi has maintained that its purchases help stabilize global energy markets. Gasoline Exports Hit Record Levels According to consultancy Wood Mackenzie, India’s crude processing is expected to rise by 130,000–160,000 barrels per day (bpd) this year, pushing total throughput to 5.51 million bpd. Of this, gasoline exports are forecast to reach an all-time high of around 400,000 bpd. Data provider Kpler pegs India’s 2025 gasoline exports at about 387,000 bpd, mostly bound for Asia. Analysts note that increased ethanol blending—boosted from 12% in 2023 to 20% in 2025—has reduced domestic gasoline demand and freed up supply for exports. Gasoil Shipments to Europe India’s gasoil (diesel) exports are also climbing. Wood Mackenzie projects gasoil exports of 610,000–630,000 bpd in 2025, while Kpler forecasts a slightly lower 560,000 bpd. Both estimates represent a four-year high. Most of these shipments are headed to Europe, where demand for heating oil is expected to rise in the winter months. Heavy refinery maintenance in Europe and the Middle East is also tightening global supply, making Indian barrels especially competitive. Margins Support Export Drive Refiners are capitalizing on strong Asian gasoline margins, which have surged 51% since the start of 2025 to around $11–$12 per barrel. Seasonal factors such as weaker domestic demand during India’s monsoon and fewer scheduled maintenance outages have further supported the export push, a refining source told Reuters. Balancing Energy Security and Trade Tensions While exports are boosting India’s refining margins and supporting global supply, they are also adding friction to U.S.-India trade ties. Washington has repeatedly raised concerns over India’s role in processing Russian oil and reselling it abroad. At the same time, Indian officials stress that higher refining output strengthens energy security while meeting both domestic and international demand. As Union Minister Piyush Goyal recently remarked, India’s long-term energy security goals will involve close collaboration with the U.S., even as refiners continue leveraging discounted Russian crude. India’s refiners are seizing a rare window of opportunity—using cheap Russian oil and rising ethanol blending to boost exports, with Europe and Asia emerging as primary beneficiaries.
