India Petroleum Gases HS2711 Import Data 2025 May Overview

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

India’s Petroleum Gases imports under HS Code 2711 in May 2025 reveal a market dominated by premium LNG from Qatar, which accounted for 28.84% of import value but just 17.26% of weight, signaling higher unit prices. Gulf suppliers like Qatar and the UAE lead with high-frequency shipments, while the US offers cost-competitive alternatives, especially with a planned tariff cut from 15% to 2.5% for propane and butane. This analysis, covering May 2025, is based on cleanly processed Customs data from the yTrade database.

India Petroleum Gases (HS 2711) 2025 May 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 import tariff on liquefied propane and butane (HS 2711) is set to drop from 15% to 2.5% basic customs duty (BCD) starting May 1, 2025, as per the Finance Bill 2025 [Union Budget]. This policy shift aims to reduce import costs and support energy-intensive industries. Given India’s strategic reliance on Petroleum Gases HS Code 2711 Import 2025 May, market participants must monitor tariff adjustments and supply chain dynamics closely to capitalize on emerging opportunities.

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

Key Observations

In May 2025, India's import of Petroleum Gases under HS Code 2711 reached a value of 2.96 billion USD with a volume of 1.06 billion kg, maintaining robust activity despite a slight dip from previous months.

Price and Volume Dynamics

The import value decreased marginally from April's 3.02 billion USD, while volume remained unchanged at 1.06 billion kg, indicating stable demand with minor price adjustments. This pattern aligns with typical industry cycles, where petroleum gases experience steady consumption driven by domestic and industrial needs, though seasonal fluctuations can cause short-term volatility. Over early 2025, values fluctuated from a high in January to lower levels, suggesting inventory management or anticipatory behavior ahead of policy shifts.

External Context and Outlook

The tariff reduction on liquefied propane and butane under HS Code 2711 from 15% to 2.5% basic customs duty, effective May 1, 2025 [Union Budget], directly explains the slight value decline by reducing import costs. This policy change is poised to enhance cost efficiency and potentially boost future import volumes for India Petroleum Gases HS Code 2711 Import in 2025, supporting a favorable outlook amid stable demand fundamentals.

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

Product Specialization and Concentration

According to yTrade data, the import of Petroleum Gases under HS Code 2711 in India for May 2025 is dominated by liquefied butanes and propane, which account for the majority of volume and value. The sub-code for liquefied butanes (27111300) holds a 37% quantity share and 30% value share, with a unit price of 1.62 USD per kilogram, while liquefied propane (27111200) follows closely with 34% quantity and 28% value at 1.67 USD per kilogram. An anomaly is noted for liquefied natural gas (27111100), which has a high value share of 41% but no recorded weight, indicating it may be handled separately from the main analysis.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes can be grouped into bulk liquefied gases, including butanes and propane, and specialized miscellaneous liquefied gases like those under 27111990 with a higher unit price of 2.07 USD per kilogram. This structure suggests a trade in fungible bulk commodities, where products are largely undifferentiated and likely priced against global energy indices, with minor variations for specific grades or forms.

Strategic Implication and Pricing Power

For India Petroleum Gases HS Code 2711 Import in 2025 May, the bulk nature implies limited pricing power for importers, who must focus on cost efficiency and supply reliability. The scheduled tariff reduction from 15% to 2.5% for liquefied propane and butane, as per [India Budget], may lower import costs and enhance competitiveness, urging players to leverage this policy change for strategic sourcing.

Check Detailed HS 2711 Breakdown

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

Geographic Concentration and Dominant Role

In May 2025, India's imports of Petroleum Gases under HS Code 2711 were heavily concentrated, with QATAR leading as the dominant supplier, accounting for 28.84% of the import value but only 17.26% of the weight, indicating a higher unit price of approximately $4.65 per kg compared to other sources, which suggests a focus on premium products like liquefied natural gas (LNG) rather than lower-grade gases.

Partner Countries Clusters and Underlying Causes

The import partners form three clear clusters: Gulf Cooperation Council members like QATAR, UAE, and KUWAIT provide high-frequency, high-volume shipments due to their proximity and extensive LNG infrastructure; African nations such as NIGERIA and ANGOLA contribute lower frequency but high-value consignments, likely from opportunistic or contract-based purchases; and the US offers large quantities at a lower unit price, possibly due to exports of cheaper propane or butane.

Forward Strategy and Supply Chain Implications

For importers, diversifying sources beyond the Gulf can reduce geopolitical risks, and the planned tariff cut from 15% to 2.5% for specific gases like propane and butane under HS Code 2711 starting May 2025 [Union Budget] should prompt a review of sourcing strategies to capitalize on lower costs, potentially increasing imports from cost-competitive regions like the US or Africa while maintaining relationships with reliable GCC suppliers.

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

Get Complete Partner Countries Profile

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

Strategic Supply Chain Overview

India Petroleum Gases Import 2025 May under HS Code 2711 is a bulk commodity market. Its price is driven by global energy indices and product grade. The dominance of liquefied butanes and propane creates a low-margin environment. The planned tariff cut from 15% to 2.5% for these gases will lower import costs. Supply security is the key implication due to heavy reliance on Gulf suppliers like Qatar. Geopolitical risks in that region threaten stability. The market’s high buyer concentration adds vulnerability to demand shifts.

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

• Use HS Code 2711 sub-category data to prioritize sourcing of liquefied propane and butane. These products offer the best value after the tariff reduction, maximizing cost savings.
• Target high-volume, high-frequency buyers for long-term contracts. They drive 74% of market value, securing stable revenue and reducing sales volatility.
• Diversify supply sources by increasing purchases from the US and Africa. Their competitive pricing lowers dependence on Gulf suppliers and mitigates geopolitical risk.
• Monitor real-time trade flows to anticipate demand from large infrequent buyers. This allows for opportunistic spot deals, capturing additional revenue without overcommitting inventory.

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 May?

The slight dip in import value (2.96B USD vs. April’s 3.02B USD) is primarily due to a tariff reduction from 15% to 2.5% on liquefied propane and butane, lowering costs while maintaining stable demand (1.06B kg volume).

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

Qatar dominates with 28.84% of import value, followed by UAE and Kuwait, leveraging Gulf Cooperation Council infrastructure for high-frequency LNG shipments. The US supplies cheaper bulk propane/butane.

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

Price gaps stem from product specialization: Qatar’s $4.65/kg reflects premium LNG (27111100), while US shipments likely focus on lower-cost bulk propane/butane (27111200/27111300) at ~$1.65/kg.

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

Prioritize long-term contracts with dominant high-volume buyers (74% of value) and diversify sources beyond the Gulf to mitigate geopolitical risks, especially with tariff cuts favoring cost-competitive regions like the US.

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

Suppliers from Qatar/UAE benefit from steady bulk demand, while US/African exporters gain opportunities as tariff reductions incentivize price-sensitive purchases. Niche players face limited traction (1% value share).

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

Primarily fungible bulk commodities (liquefied butanes/propane) for industrial and domestic energy needs, with minor specialized grades (e.g., LNG) commanding higher prices.