India Petroleum Gases HS2711 Import Data 2025 April Overview

India Petroleum Gases (HS 2711) 2025 April Import: Key Takeaways

India's Petroleum Gases (HS Code 2711) imports in April 2025 reveal a market heavily reliant on Gulf suppliers, with the UAE dominating at 31.5% share but supplying lower-grade LPG at $2.03/kg. The import structure leans on long-term Gulf contracts for stability, supplemented by spot purchases from the US and Australia for specialized needs. This analysis, covering April 2025, is based on processed Customs data from the yTrade database.

India Petroleum Gases (HS 2711) 2025 April Import Background

What is HS Code 2711?

HS Code 2711 covers petroleum gases and other gaseous hydrocarbons, primarily in liquefied form, including liquefied natural gas (LNG), propane, and butane. These products are critical for energy production, industrial processes, and household use, driving steady global demand. In India, they fuel sectors like power generation, manufacturing, and transportation, making them strategically vital for economic growth.

Current Context and Strategic Position

India's Finance Bill 2025 introduces significant customs duty changes for HS Code 2711, including a reduction in Basic Customs Duty (BCD) on liquefied propane and butane from 15% to 2.5% effective May 1, 2025 [SJ Exim Services]. Until then, these products attract a 20% BCD plus a 10% social welfare surcharge, creating a short-term cost burden for importers. India's reliance on petroleum gases imports under HS Code 2711 in April 2025 reflects its growing energy needs, necessitating close monitoring of policy shifts and global supply dynamics to ensure market stability.

India Petroleum Gases (HS 2711) 2025 April Import: Trend Summary

Key Observations

In April 2025, India's import of Petroleum Gases under HS Code 2711 reached 3.02 billion USD in value with a volume of 1.06 billion kg, showing a noticeable decline from the previous month.

Price and Volume Dynamics

The month-over-month comparison reveals an 11.4% drop in value and a 13.1% decrease in volume from March to April 2025. This pullback aligns with typical seasonal patterns for petroleum gases, where demand often softens after the winter heating season ends, reducing the need for stock replenishment. The sequential decline suggests a market adjustment rather than a structural shift, with import flows moderating as industrial and residential consumption patterns normalize post-winter.

External Context and Outlook

The observed volatility in April's imports can be partly attributed to policy anticipation, as the [Finance Bill 2025] outlined a reduction in basic customs duty for key sub-codes like propane and butane from 15% to 2.5%, effective May 1, 2025 (Finance Bill 2025). Importers likely delayed shipments to capitalize on lower costs, contributing to the April dip. Looking ahead, the duty changes are expected to stimulate import volumes from May onward, supporting India's energy security and industrial demand under HS Code 2711.

India Petroleum Gases (HS 2711) 2025 April Import: HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, the India Petroleum Gases HS Code 2711 Import for 2025 April is dominated by liquefied natural gas (27111100), which accounts for 42.07 percent of the total import value. An extreme price anomaly exists for other gaseous hydrocarbons (27112900) with a unit price of 385.56 USD per kilogram, and this is isolated from the main analysis due to its outlier nature.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two groups: bulk commodities and specialty grades. Bulk liquefied propane (27111200) and butanes (27111300) have unit prices around 1.6 USD per kilogram, indicating a trade in fungible bulk commodities tied to market indices. The other liquefied gases (27111990) show a higher unit price of 2.82 USD per kilogram, suggesting a differentiated, higher-grade product.

Strategic Implication and Pricing Power

Importers face limited pricing power for bulk propane and butane, as costs are driven by global indices. The customs duty reduction on these products from 15 percent to 2.5 percent, as noted in the Finance Bill 2025 [Union Budget], may lower import expenses and intensify competition. Strategic focus should prioritize cost management for bulk imports and potential opportunities in specialty gas segments.

Check Detailed HS 2711 Breakdown

India Petroleum Gases (HS 2711) 2025 April Import: Market Concentration

Geographic Concentration and Dominant Role

India's Petroleum Gases HS Code 2711 Import for 2025 April is heavily concentrated, with the United Arab Emirates holding a dominant 31.5% share of total import value. This leading role is supported by a high shipment frequency of 355, indicating a steady and reliable supply flow. A key disparity exists between the UAE's value share (31.5%) and its weight share (44.2%), which calculates to a lower average unit price of approximately $2.03/kg. This price point suggests the UAE primarily supplies lower-grade liquefied petroleum gas (LPG) rather than higher-value liquefied natural gas (LNG).

Partner Countries Clusters and Underlying Causes

The import partners form three clear clusters. The first is a group of high-volume Gulf suppliers: Qatar, Kuwait, and Saudi Arabia. Together they account for nearly 50% of the import value, driven by long-term contracts for bulk LNG and LPG, which ensures energy security. The second cluster consists of mid-volume partners with strategic value: Oman, the United States, and Australia. They serve as flexible, spot-market suppliers, with the US and Australia likely providing higher-purity products for specific industrial uses. The final cluster includes erratic suppliers like Nigeria, Bahrain, and Iraq. Their low frequency and inconsistent volumes point to opportunistic, short-term purchases to fill specific supply gaps.

Forward Strategy and Supply Chain Implications

For buyers, the strategy is to lock in long-term contracts with primary Gulf suppliers to guarantee stable volumes and favorable pricing. The recent reduction of the Basic Customs Duty on liquefied propane and butane from 15% to 2.5% [SJ Exim Services] effective May 1, 2025, makes sourcing these products from all suppliers more cost-effective. Importers must prepare for this tariff change and ensure all regulatory documents from the DGFT are in order. Diversifying some procurement to spot markets with the US or Australia can provide a hedge against regional supply disruptions and access to specialized gas grades.

Table: India Petroleum Gases (HS 2711) Top Partner Countries (Source: yTrade)

Get Complete Partner Countries Profile

India Petroleum Gases (HS 2711) 2025 April Import: Action Plan for Petroleum Gases Market Expansion

Strategic Supply Chain Overview

India Petroleum Gases Import 2025 April under HS Code 2711 is a bulk commodity market. Price is driven by global energy indices for standard LPG grades and by product purity for specialty gases. Supply security depends heavily on long-term contracts with Gulf nations. The UAE, Qatar, and Saudi Arabia dominate volume, ensuring stable flows but creating geopolitical risk. The customs duty cut on propane and butane lowers costs but increases competition. This market requires a dual focus: secure bulk supply and explore niche, higher-value segments.

Action Plan: Data-Driven Steps for Petroleum Gases Market Execution

• Analyze buyer purchase frequency data. Identify the dominant high-volume buyers and negotiate long-term supply agreements with them. This secures stable revenue and reduces market volatility.
• Compare unit prices across partner countries. Use this data to target cost-efficient suppliers like the UAE for bulk LPG and the US or Australia for higher-purity gases. This optimizes procurement spending and product quality.
• Monitor shipment frequency of irregular suppliers. Use this insight to prepare backup sourcing options from partners like Nigeria or Oman. This mitigates supply chain disruption risks from primary suppliers.
• Track the customs duty reduction effective May 2025. Adjust your import costing models now for propane and butane under HS Code 2711. This ensures full cost savings are captured from the new 2.5% rate.
• Segment buyers by value and frequency. Develop tailored sales strategies for high-value regular buyers and smaller, occasional ones. This diversifies your customer base and reduces over-reliance on a few large clients.

Take Action Now —— Explore India Petroleum Gases Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Petroleum Gases Import 2025 April?

India's petroleum gases imports declined by 11.4% in value and 13.1% in volume from March to April 2025, reflecting seasonal demand softening post-winter. Importers also delayed shipments ahead of a customs duty reduction from 15% to 2.5% effective May 2025.

Q2. Who are the main partner countries in this India Petroleum Gases Import 2025 April?

The UAE dominates with a 31.5% import value share, followed by Gulf suppliers Qatar, Kuwait, and Saudi Arabia, which collectively account for nearly 50% of imports. The US and Australia serve as mid-volume strategic partners.

Q3. Why does the unit price differ across India Petroleum Gases Import 2025 April partner countries?

Price differences stem from product grades: bulk propane/butane trades at ~$1.6/kg, while specialty liquefied gases (27111990) command $2.82/kg. The UAE’s lower $2.03/kg average reflects its focus on bulk LPG over premium LNG.

Q4. What should importers in India focus on when buying Petroleum Gases?

Importers should prioritize long-term contracts with dominant Gulf suppliers for stability while diversifying into spot markets (e.g., US/Australia) for niche grades. The customs duty cut from May 2025 makes bulk propane/butane more cost-effective.

Q5. What does this India Petroleum Gases import pattern mean for overseas suppliers?

Suppliers like the UAE and Qatar benefit from steady bulk demand, while the US and Australia can capitalize on specialty gas opportunities. Over-reliance on India’s dominant buyer cluster (73% value share) poses risks if demand shifts.

Q6. How is Petroleum Gases typically used in this trade flow?

Bulk propane and butane serve fungible energy needs (e.g., heating, industrial fuel), while higher-grade liquefied gases cater to specialized industrial or chemical applications requiring purity.