India Petroleum Gases HS2711 Import Data 2025 March Overview

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

India’s Petroleum Gases imports under HS Code 2711 in March 2025 reveal a market dominated by the UAE and Qatar, with the former supplying bulk, lower-cost shipments and the latter delivering premium-priced, higher-quality products. The GCC region accounts for over 85% of imports, ensuring stable supply but highlighting geographic concentration risks. This analysis, based on processed Customs data from the yTrade database, underscores the need for strategic diversification while leveraging tariff reductions on liquefied propane and butane from May 2025.

India Petroleum Gases (HS 2711) 2025 March Import Background

What is HS Code 2711?

HS Code 2711 covers petroleum gases and other gaseous hydrocarbons, including liquefied natural gas (LNG), propane, butane, and ethane. These products are critical for energy production, industrial processes, and household use, driving stable 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 import policy for Petroleum Gases (HS Code 2711) is undergoing a significant shift in March 2025, with tariff reductions on liquefied propane and butane to 2.5% effective May 1, 2025, following a temporary higher duty period [Union Budget]. This aligns with India’s strategic focus on energy affordability and supply chain stability. As a major importer, India’s trade dynamics under HS Code 2711 require close monitoring, especially with fluctuating global energy markets and domestic demand trends.

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

Key Observations

In March 2025, India's import of Petroleum Gases under HS Code 2711 surged to 3.41 billion USD in value and 1.22 billion kg in volume, marking a strong rebound from the previous month and highlighting robust activity in this sector.

Price and Volume Dynamics

The March figures show a notable month-over-month increase, with value rising by approximately 20% from February's 2.84 billion USD and volume nearly doubling from 645.01 million kg. This uptick is consistent with seasonal demand patterns for petroleum gases, which often peak in late winter due to heightened heating needs and industrial stock replenishment cycles. The volume surge particularly indicates aggressive import strategies to build inventories ahead of expected market changes, overshadowing any short-term price pressures.

External Context and Outlook

The volatility in March imports is directly influenced by India's tariff policy adjustments, where duties on liquefied propane and butane were raised to 20% from February to April 2025 [Union Budget], incentivizing accelerated purchases before the scheduled reduction to 2.5% in May. This external factor, coupled with steady industrial demand, shaped the import spike, suggesting continued attention to policy-driven fluctuations in the India Petroleum Gases HS Code 2711 Import landscape for 2025.

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

Product Specialization and Concentration

According to yTrade data, the India Petroleum Gases HS Code 2711 Import market in March 2025 is dominated by liquefied natural gas (27111100), which holds a 42% value share. Unit price disparities highlight specialization, with other liquefied gases (27111990) at 1.99 USD per kilogram compared to liquefied butanes and propane at around 1.6 USD per kilogram. The gaseous state product (27112900) is an anomaly with a unit price of 43.81 USD per kilogram, isolated due to minimal volume.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two categories: bulk liquefied petroleum gases (LPG) like propane and butanes (27111200 and 27111300) with unit prices near 1.6 USD per kilogram, indicating fungible commodity trade linked to market indices, and specialized liquefied gases (27111990) with a higher unit price, suggesting differentiated grades or value-added forms. Liquefied natural gas (27111100) represents a separate high-value segment, though unit price data is unavailable for direct comparison.

Strategic Implication and Pricing Power

For bulk LPG imports, pricing power is limited due to commodity characteristics and global price linkages; the tariff reduction to 2.5% for propane and butane, as per the Union Budget [Union Budget], may lower costs and boost import volumes from May 2025. Specialized gases offer potential for better margins through niche demand. Importers should prioritize supply chain optimization and contract strategies to navigate this mixed market structure for India Petroleum Gases HS Code 2711 Import in 2025 March.

Check Detailed HS 2711 Breakdown

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

Geographic Concentration and Dominant Role

In March 2025, India's import of Petroleum Gases under HS Code 2711 is dominated by the UNITED ARAB EMIRATES, which accounts for 30.89% of the value but 46.68% of the weight, indicating a lower unit price around 1.84 USD/kg and suggesting bulk, standard-grade commodity imports. QATAR follows with a higher value share of 32.88% against only 14.05% weight, pointing to a premium unit price of approximately 6.52 USD/kg, likely for higher-quality or specialized gases.

Partner Countries Clusters and Underlying Causes

The top suppliers form three clear clusters: first, Gulf Cooperation Council members like UAE, QATAR, KUWAIT, SAUDI ARABIA, and OMAN, which provide over 85% of imports due to their vast oil and gas reserves and geographic proximity, ensuring reliable, cost-effective supply. Second, SINGAPORE and the UNITED STATES offer smaller, high-frequency shipments, possibly serving as trading hubs or for specific product blends. Third, NORWAY, AUSTRALIA, and MOZAMBIQUE contribute minimally, likely representing niche or emerging sources for diversification or spot market needs.

Forward Strategy and Supply Chain Implications

For importers, leveraging the dominant GCC cluster can secure stable volumes, while exploring alternatives like AUSTRALIA may mitigate geopolitical risks. The planned tariff reduction to 2.5% for liquefied propane and butane from May 2025, as per [Union Budget], could lower costs for these specific gases, making strategic stockpiling or contract renegotiations advisable before the change. Overall, India's Petroleum Gases import strategy should balance cost efficiency from core suppliers with flexibility from secondary sources to ensure energy security.

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

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

Strategic Supply Chain Overview

India Petroleum Gases Import 2025 March under HS Code 2711 is a commodity market dominated by bulk LPG. Price is driven by product grade and global indices, with bulk gases like propane trading near 1.6 USD/kg and specialized liquefied gases reaching 1.99 USD/kg. Geopolitical factors and GCC supplier reliance add cost volatility. Supply chain implications focus on secure, high-volume logistics from Gulf partners like UAE and Qatar, balanced by niche sourcing for premium grades. The market's high buyer concentration (83% value from frequent bulk importers) demands stable, large-scale shipment planning.

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

• Target frequent bulk buyers with volume-based contracts to secure stable demand, as they drive 83% of HS Code 2711 import value.
• Pre-negotiate contracts for propane and butane before May 2025 to leverage the 2.5% tariff cut and reduce landed costs.
• Diversify suppliers beyond GCC using trade data to include Australia or Norway, mitigating geopolitical supply risks.
• Analyze unit price gaps to shift import mix toward specialized gases (27111990), capturing higher margins from niche demand.

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 March?

India's March 2025 petroleum gases import surged by 20% in value and nearly doubled in volume due to seasonal demand and accelerated purchases ahead of a tariff reduction from 20% to 2.5% in May 2025.

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

The UAE (30.89% value share) and Qatar (32.88% value share) dominate imports, with GCC members collectively supplying over 85% of India’s petroleum gases.

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

Price differences stem from product specialization—Qatar’s higher unit price (6.52 USD/kg) suggests premium-grade gases, while UAE’s lower price (1.84 USD/kg) reflects bulk commodity imports.

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

Importers should prioritize contracts with dominant high-volume buyers (83% market share) and leverage GCC suppliers for cost efficiency while diversifying to mitigate geopolitical risks.

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

Suppliers from the GCC can expect stable, high-volume demand, while niche players like Australia or Norway may find opportunities in specialized or spot-market segments.

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

Petroleum gases are primarily imported as bulk LPG for industrial and heating needs, with specialized grades likely serving niche applications or value-added processing.