India Petroleum Gases HS2711 Import Data 2025 August Overview

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

India's Petroleum Gases (HS Code 2711) imports in August 2025 reveal a market dominated by high-grade LNG shipments from the Middle East, with the UAE leading at 31.72% of import value but only 29.83% by weight, signaling premium pricing. The Gulf region's stronghold, coupled with Iraq's high-value, low-weight shipments, underscores reliance on specialized suppliers, while tariff cuts on propane and butane may shift sourcing to cost-effective alternatives like the US. This analysis, covering August 2025, is based on cleanly processed Customs data from the yTrade database.

India Petroleum Gases (HS 2711) 2025 August Import Background

What is HS Code 2711?

HS Code 2711 covers petroleum gases and other gaseous hydrocarbons, including liquefied natural gas (LNG), propane, and butane. These products are critical for energy production, industrial processes, and household use, driving consistent global demand. India’s reliance on imports under this code reflects its growing energy needs and industrial expansion.

Current Context and Strategic Position

India’s Basic Customs Duty (BCD) for liquefied propane and butane (tariff item 2711 12 00) is set to drop from 15% to 2.5% effective May 1, 2025, though a temporary 20% rate applies until then [Union Budget]. This policy shift aims to stabilize supply costs amid rising energy demand. As a net importer of petroleum gases, India’s HS Code 2711 import dynamics in August 2025 will hinge on global price trends and domestic regulatory adjustments, necessitating close market monitoring.

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

Key Observations

In August 2025, India's import of Petroleum Gases under HS Code 2711 surged to an exceptional value of approximately 158.01 billion USD with a volume of 716.09 million kg, marking a dramatic departure from the stable, lower figures seen in earlier months of the year.

Price and Volume Dynamics

The monthly trend for India Petroleum Gases HS Code 2711 Import in 2025 showed a gradual decline from January's 3.66 billion USD to July's 3.20 billion USD, with volumes peaking in March at 1.22 billion kg before easing. August's value exploded over 49 times month-over-month from July, while volume dropped from 1.39 billion kg to 716.09 million kg, indicating a sharp shift towards higher-value products or a atypical large shipment. This outlier likely reflects industry stockpiling or speculative moves ahead of policy shifts, rather than typical seasonal demand cycles for petroleum gases, which often see steadier import patterns tied to energy and industrial use.

External Context and Outlook

The August spike aligns with the reduction in Basic Customs Duty for specific Petroleum Gases like liquefied propane and butane under HS Code 2711, from 15% to 2.5% effective May 1, 2025, as per the [Union Budget], which lowered import costs and spurred activity. With stable classification supporting trade, future outlook remains influenced by global energy price fluctuations and domestic demand, though such extreme volatility may not sustain without further macroeconomic or policy triggers.

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

Product Specialization and Concentration

According to yTrade data, the India Petroleum Gases HS Code 2711 Import for August 2025 is dominated by butanes and propane, with HS 27111300 (butanes) and HS 27111200 (propane) holding over 80% of the total value share. These products have unit prices of 188 USD/kg and 176 USD/kg, indicating a focus on high-volume, lower-unit-price commodities. An extreme price anomaly is present in HS 27111990, with a unit price of 1307 USD/kg, which 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 main groups: bulk liquefied petroleum gases like butanes and propane, which are standardized commodities likely traded on market indices, and liquefied natural gas (HS 27111100), which has high quantity but is not weight-measured in this data. This grouping shows that the trade is primarily in undifferentiated bulk commodities, with little value-add variation beyond basic form.

Strategic Implication and Pricing Power

Market players face limited pricing power due to the commodity nature of these imports, with prices tied to global indices. However, a tariff reduction for propane and butanes from 15% to 2.5%, effective May 2025, could lower costs and improve competitiveness for Indian importers [Union Budget]. Strategic focus should be on optimizing supply chains and leveraging volume efficiencies.

Check Detailed HS 2711 Breakdown

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

Geographic Concentration and Dominant Role

India's Petroleum Gases HS Code 2711 Import in 2025 August is dominated by the Middle East, with UNITED ARAB EMIRATES leading at 31.72% of import value but only 29.83% of weight, indicating a higher unit price around 234.6 USD/kg and suggesting imports of premium or processed gases like LNG. This value-weight disparity points to a focus on higher-grade commodities rather than bulk raw materials.

Partner Countries Clusters and Underlying Causes

The top partners form two clear clusters: first, Gulf nations like UAE, Qatar, Kuwait, and Saudi Arabia account for high volumes and values due to their role as major LNG exporters with established trade routes to India. Second, Iraq shows a high value share (8.78%) but low weight (1.48%), likely reflecting specialized, high-cost shipments such as liquefied natural gas, while the US and others have lower value ratios, indicating cheaper or different grade imports.

Forward Strategy and Supply Chain Implications

For importers, diversifying sources beyond the Middle East could mitigate geopolitical risks, especially with tariff changes reducing duties on propane and butane from 15% to 2.5% by May 2025 [Union Budget], making alternatives like the US more cost-effective. This shift may encourage sourcing higher-value gases under HS Code 2711 to leverage lower costs and ensure stable supply chains.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

The India Petroleum Gases Import 2025 August under HS Code 2711 is a bulk commodity market. Prices are driven by global benchmarks and product grade. The dominant imports are butanes and propane, with prices tied to international indices. A planned tariff cut from 15% to 2.5% in May 2025 will reduce costs. Supply chains face high reliance on Middle East partners like UAE and Qatar. This creates geopolitical risk. Bulk buyers control 68% of import value, increasing vulnerability to demand shifts. The market lacks pricing power due to standardized products.

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

• Target high-frequency bulk buyers with long-term contracts. Use trade data to identify their purchase cycles. This secures stable revenue and reduces sales volatility.
• Diversify supply sources beyond the Middle East. Analyze cost and logistics data for US or other alternatives. This mitigates geopolitical risk and capitalizes on lower tariffs.
• Monitor real-time policy updates on tariff changes. Set alerts for customs notifications. This allows quick cost adjustment and competitive pricing post-May 2025.
• Analyze outlier HS codes like 27111990 for niche opportunities. Review shipment specifics and buyer profiles. This uncovers potential high-margin segments outside bulk commodities.
• Optimize inventory based on buyer frequency patterns. Align stock levels with dominant import rhythms. This prevents overstock and reduces holding costs.

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 August?

The August 2025 surge to 158.01 billion USD reflects atypical stockpiling or speculative moves ahead of a tariff reduction from 15% to 2.5% for propane and butanes, rather than regular demand cycles.

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

The UAE dominates with 31.72% of import value, followed by Qatar, Kuwait, and Saudi Arabia, forming a Gulf-centric supply cluster. Iraq contributes 8.78% but with specialized high-cost shipments.

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

Price gaps stem from product grade variations—bulk butanes/propane average 180 USD/kg, while UAE’s 234.6 USD/kg suggests LNG or premium gases, and Iraq’s outlier shipments skew higher.

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

Prioritize long-term contracts with dominant high-volume buyers (67.79% of trade) and diversify sources beyond the Middle East to mitigate geopolitical risks post-tariff cuts.

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

Suppliers must secure relationships with India’s bulk buyers but anticipate demand shifts as tariff reductions make alternatives like US imports more competitive.

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

Imports are primarily undifferentiated bulk commodities (e.g., propane, butanes) for energy or industrial use, with limited value-add beyond basic liquefied forms.