India Petroleum Gases HS2711 Import Data 2025 July Overview

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

India's Petroleum Gases import under HS Code 2711 in July 2025 shows heavy reliance on Middle Eastern suppliers, with the UAE dominating 29.19% of import value and 40.34% of weight, signaling bulk shipments at lower unit prices. The market remains concentrated, raising geopolitical risks, while recent duty cuts on liquefied propane and butane could incentivize diversification into Africa or the US. This analysis covers July 2025 and is based on cleanly processed Customs data from the yTrade database.

India Petroleum Gases (HS 2711) 2025 July Import Background

What is HS Code 2711?

HS Code 2711 classifies Petroleum gases and other gaseous hydrocarbons, primarily in liquefied form, including liquefied natural gas (LNG), propane, and butane. These products are critical inputs for industries such as energy, petrochemicals, and manufacturing, driving stable global demand due to their versatility and energy efficiency. India’s reliance on imports under this code reflects its growing industrial and domestic energy needs.

Current Context and Strategic Position

In July 2025, India’s import policy for HS Code 2711 saw a significant shift with the reduction of Basic Customs Duty (BCD) on liquefied propane and butane from 15% to 2.5%, effective May 2025 [Finance Bill 2025]. This move aims to lower production costs for downstream industries, aligning with the Make in India initiative. As a net importer of petroleum gases, India’s strategic position in 2025 hinges on balancing cost competitiveness with energy security, necessitating close monitoring of global supply chains and tariff dynamics.

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

Key Observations

India's Petroleum Gases HS Code 2711 Import in July 2025 surged to $3.20 billion in value and 1.39 billion kg in volume, marking a strong recovery from the previous month's lows and highlighting robust mid-year demand.

Price and Volume Dynamics

The import trend showed a gradual decline from January to June 2025, with value dropping from $3.66 billion to $2.89 billion and volume fluctuating, but July reversed this with a 10.7% month-over-month value increase and a 37.6% volume jump. This rebound aligns with typical industrial stock replenishment cycles for petroleum gases, where mid-year often sees heightened procurement for energy and manufacturing sectors, driving the uptick without external shocks.

External Context and Outlook

The July surge was likely fueled by the reduced Basic Customs Duty on key products like liquefied propane and butane, cut from 15% to 2.5% effective May 1, 2025, as per the [Finance Bill 2025]. This policy lowered import costs, incentivizing higher volumes and supporting industrial growth. If global energy prices remain stable, this positive momentum could persist through 2025.

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

Product Specialization and Concentration

According to yTrade data, India's import of Petroleum Gases under HS Code 2711 in July 2025 is heavily concentrated in liquefied butane and propane, with butane (HS 27111300) accounting for nearly 32% of the value and propane (HS 27111200) for about 30%. Both products show uniform unit prices around 1.5 USD per kilogram, indicating a commodity-driven market without significant specialization in high-value grades. An anomaly is present with gaseous state products (HS 27112900), which has a drastically higher unit price of 280.72 USD per kilogram, but this is isolated from the main analysis due to its minimal volume and value share.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes can be grouped into bulk liquefied gases: natural gas (HS 27111100), propane (HS 27111200), butane (HS 27111300), and other liquefied hydrocarbons (HS 27111990). All exhibit similar unit prices close to 1.5 USD per kilogram, reinforcing that these are fungible bulk commodities traded based on weight and linked to global energy indices rather than differentiated by quality or value-add stages. This structure points to a market where products are interchangeable and price-sensitive.

Strategic Implication and Pricing Power

For India Petroleum Gases HS Code 2711 Import in 2025 July, the commodity nature implies low pricing power for importers, with costs driven by international supply and demand. The recent duty reduction on liquefied propane and butane from 15% to 2.5%, as noted in the [Finance Bill 2025], lowers input costs and supports strategic focus on cost-efficient sourcing for industrial use, rather than product differentiation.

Check Detailed HS 2711 Breakdown

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

Geographic Concentration and Dominant Role

In July 2025, India's import of Petroleum Gases under HS Code 2711 shows strong geographic concentration, with UNITED ARAB EMIRATES as the dominant supplier, accounting for 29.19% of import value and 40.34% of weight. The higher weight ratio compared to value ratio suggests UAE provides bulk shipments at lower unit prices, around estimated lower USD per kilogram, typical for commodity-grade products in this trade.

Partner Countries Clusters and Underlying Causes

The top suppliers form three clear clusters: Middle Eastern nations like UAE, Qatar, Kuwait, and Saudi Arabia lead with high volume and frequency, driven by their abundant natural gas reserves and proximity to India. The US stands out with high value but moderate quantity, indicating possible higher-value or processed gas exports. African countries such as Nigeria and Mozambique show lower frequency but notable value, likely due to spot purchases or emerging supply agreements for diversification.

Forward Strategy and Supply Chain Implications

For India's Petroleum Gases import, the heavy reliance on Middle Eastern suppliers calls for strategic diversification to mitigate geopolitical risks. The recent duty reduction on specific gases like liquefied propane and butane, from 15% to 2.5% as per [sjexim.services], lowers import costs and could incentivize increased sourcing from cost-effective regions like Africa or the US, enhancing supply chain resilience.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

India's Petroleum Gases Import under HS Code 2711 in July 2025 operates as a bulk commodity market. Prices are driven by global energy indices and geopolitical factors, not product differentiation. The market shows high buyer concentration with a few large, frequent purchasers dominating 70% of value. Geographically, supply relies heavily on Middle Eastern partners like UAE, creating vulnerability to regional instability. The recent duty cut on specific gases lowers costs but reinforces the need for supply chain diversification and cost-efficient sourcing to ensure energy security.

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

• Use HS Code 2711 import data to track real-time price shifts linked to global energy indices, enabling dynamic pricing and cost control.
• Analyze buyer frequency patterns to identify and secure long-term contracts with high-value clients, ensuring revenue stability.
• Map supplier countries by cost and risk to diversify sources beyond the Middle East, reducing geopolitical exposure.
• Monitor duty change impacts on specific sub-codes like propane and butane to optimize procurement timing and maximize savings.
• Engage smaller, frequent buyers with tailored supply agreements to broaden the client base and decrease reliance on major purchasers.

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 July?

India's July 2025 import surge (10.7% value, 37.6% volume growth) reflects mid-year industrial demand and a customs duty cut from 15% to 2.5% on key products like liquefied propane and butane, incentivizing bulk purchases.

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

The UAE dominates with 29.19% of import value, followed by Middle Eastern suppliers (Qatar, Kuwait, Saudi Arabia) and the US, which ships higher-value shipments.

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

Most liquefied gases (e.g., butane, propane) trade uniformly at ~1.5 USD/kg, but gaseous state products (HS 27112900) spike to 280.72 USD/kg due to niche demand.

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

Prioritize long-term contracts with dominant high-value buyers (70% market share) while diversifying suppliers beyond the Middle East to mitigate geopolitical risks.

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

Middle Eastern suppliers benefit from bulk demand, but the duty reduction opens opportunities for African/US exporters to compete on cost-efficiency.

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

Primarily industrial—liquefied butane and propane (62% combined share) serve as bulk energy inputs for manufacturing and processing sectors.