India Petroleum Gases HS2711 Import Data 2025 February Overview

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

India’s Petroleum Gases (HS Code 2711) imports in February 2025 reveal heavy reliance on the UAE, which dominates volume (55.36% of weight) but offers lower unit prices, while Qatar supplies higher-value LNG. The market shows a clear Gulf cluster dominance, with niche high-cost shipments from the U.S. and Japan. This geographic concentration creates supply chain risks, compounded by India’s recent 20% customs duty hike on liquefied propane and butane. Based on cleanly processed Customs data from the yTrade database, this analysis highlights critical trends and risks for India’s 2025 import strategy.

India Petroleum Gases (HS 2711) 2025 February Import Background

What is HS Code 2711?

HS Code 2711 classifies petroleum gases and other gaseous hydrocarbons, including liquefied natural gas (LNG), propane, and butane. These products are critical for energy production, industrial manufacturing, and household use, driving stable global demand. India relies on imports to meet domestic energy and industrial needs, making this HS code strategically significant for trade.

Current Context and Strategic Position

In February 2025, India adjusted tariffs on HS Code 2711 imports, including a 20% Basic Customs Duty (BCD) and 20% additional duties on liquefied propane and butane [Union Budget]. These interim measures, effective until May 2025, reflect India's balancing act between energy security and fiscal policy. Given India's growing demand for petroleum gases, market participants must monitor these regulatory shifts closely to navigate the 2025 import landscape.

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

Key Observations

In February 2025, India's import of Petroleum Gases under HS Code 2711 reached a value of $2.84 billion with a volume of 645.01 million kg, indicating a significant shift from the previous month.

Price and Volume Dynamics

The import value for February dropped by 22.4% month-over-month from January's $3.66 billion, which contrasts with typical seasonal patterns where winter demand for heating and industrial applications often supports stable or rising imports. This decline suggests a disruption in the usual stock replenishment cycle, possibly due to external policy interventions rather than inherent market dynamics.

External Context and Outlook

The observed volatility is directly linked to India's tariff adjustments, as outlined in the [Union Budget], which imposed a 20% basic customs duty and additional levies on certain Petroleum Gases effective February 2, 2025. These measures likely prompted importers to reduce volumes ahead of the changes, with the provisional rates set to evolve by May 2025, indicating ongoing adjustments in trade flows for India Petroleum Gases HS Code 2711 Import 2025 February.

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

Product Specialization and Concentration

In February 2025, India's imports of Petroleum Gases under HS Code 2711 were dominated by propane, with liquefied propane accounting for the largest value and quantity shares. According to yTrade data, propane imports comprised over 30% of the total value and 40% of the quantity, at a unit price of 2.71 USD per kilogram. A high-value anomaly was identified for ethylene, propylene, butylene, and butadiene, with a unit price of 314.21 USD per kilogram, which is isolated from the main trade due to its specialized nature.

Value-Chain Structure and Grade Analysis

The non-anomalous imports are grouped into bulk commodities, primarily propane and butanes, which are fungible products likely priced against global indices. A smaller segment consists of other liquefied gases not elsewhere classified, with slightly higher unit prices around 4.32 USD per kilogram, but still reflecting commodity characteristics rather than finished goods.

Strategic Implication and Pricing Power

The commodity-driven structure limits pricing power for importers, as costs are tied to international market fluctuations. The tariff increase to 20% basic customs duty on liquefied propane and butanes, as reported in the Union Budget, may raise import expenses and necessitate strategic adjustments for buyers in India. [Union Budget] This could lead to higher consumer prices or alternative sourcing strategies.

Check Detailed HS 2711 Breakdown

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

Geographic Concentration and Dominant Role

India's Petroleum Gases (HS Code 2711) import profile for February 2025 is heavily concentrated, with the United Arab Emirates (UAE) serving as the dominant source. The UAE accounted for 42.08% of total import shipments and 55.36% of the total weight, but only 36.70% of the total value. This disparity, where the value share is significantly lower than the weight share, points to a lower average unit price for shipments from the UAE, confirming the commodity nature of this energy product where large volumes are traded at competitive rates.

Partner Countries Clusters and Underlying Causes

The import structure reveals two primary clusters. The first is a core Gulf supplier group consisting of the UAE, Qatar, and Kuwait. Qatar shows a contrasting pattern to the UAE, with a value share (27.84%) that is much higher than its weight share (6.36%), indicating it supplies a higher-value product mix, likely more liquefied natural gas (LNG). The second cluster includes other regional partners like Saudi Arabia and Oman, which show more balanced value-to-weight ratios, suggesting a mix of standard petroleum gas products. A third, minor cluster consists of partners like the United States and Japan, which have very high value-to-weight ratios, implying they are sources for specialized, high-cost shipments that fill specific niche demands.

Forward Strategy and Supply Chain Implications

For buyers, this geographic concentration creates both opportunity and risk. Relying heavily on the UAE ensures volume and competitive pricing but also exposes supply chains to regional geopolitical instability. The recent Indian budget changes, which increased the Basic Customs Duty on items like liquefied propane and butane under this HS code to 20% [Union Budget], will directly raise costs for importers (Union Budget). This makes diversifying sources within the Gulf cluster a key strategy to mitigate both cost and supply risks for India's Petroleum Gases import needs in 2025.

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

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

Strategic Supply Chain Overview

India's Petroleum Gases Import under HS Code 2711 in February 2025 is a commodity-driven market. Prices are set by global energy indices and product grades, not by importer negotiation. The recent 20% customs duty hike on key products like propane and butane directly raises costs. Supply chains face high concentration risk, with over 55% of volume sourced from the UAE alone. This reliance on Gulf partners offers competitive pricing but exposes India to regional instability and freight disruptions. The market is controlled by a few large, frequent buyers, limiting flexibility for smaller importers.

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

• Track real-time unit prices by country. Compare UAE's lower-cost shipments against Qatar's premium grades to optimize sourcing mix and manage budget impacts from the duty increase.
• Prioritize contracts with high-value, high-frequency buyers. Secure long-term volume agreements with top importers to ensure stable demand and offset tariff-driven cost increases.
• Diversify sources within the Gulf cluster. Add suppliers from Qatar or Kuwait to reduce over-dependence on UAE and mitigate geopolitical supply chain risks.
• Analyze niche high-value shipments from the US or Japan. Target specialized gas imports for premium applications to capture higher margins unaffected by bulk commodity competition.
• Use shipment frequency data to anticipate demand cycles. Align inventory with buyer purchase patterns to avoid overstock and reduce storage costs in a volatile price environment.

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 February?

The 22.4% month-over-month drop in import value to $2.84 billion is primarily due to India’s tariff adjustments, including a 20% customs duty on liquefied propane and butanes, which disrupted typical winter demand patterns.

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

The UAE dominates with 55.36% of import weight, followed by Qatar (27.84% of value) and Kuwait, forming a core Gulf supplier cluster. The US and Japan serve niche high-value demand.

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

Bulk propane and butanes from the UAE trade at commodity prices (~2.71 USD/kg), while Qatar’s higher-value LNG and specialized shipments (e.g., ethylene at 314.21 USD/kg) skew unit costs.

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

Prioritize relationships with dominant high-volume buyers (71.34% of trade value) but diversify sources within the Gulf to mitigate risks from the UAE’s heavy reliance and tariff impacts.

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

Suppliers face a dual opportunity: bulk commodity demand from the UAE cluster and niche premiums from specialized buyers, though India’s tariff volatility requires flexible pricing strategies.

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

Most imports are fungible bulk commodities (propane/butanes) for industrial and energy applications, with minor high-grade gases like ethylene serving specialized chemical or manufacturing needs.