NEW DELHI : Indian oil refiners are increasing gasoline and diesel exports to their highest levels in several years, driven by expanded crude processing capacity and increased domestic ethanol blending that has freed up fuel supplies for overseas markets, traders and analysts said. Refiners in India, which sources about a third of its crude from Russia, are boosting runs and redirecting surplus barrels abroad.

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 . . .