India Petroleum Gases Import Market -- HS 2711 Trade Data & Price Trend (Q1 2025)

India Petroleum Gases Import (HS 2711) Key Takeaways

India’s Petroleum Gases imports under HS Code 2711 in Q1 2025 were dominated by bulk liquefied butanes and propane, reflecting a low-differentiation, price-sensitive energy market. Import value fell 7% quarterly, with sharp February volatility followed by a March rebound as buyers anticipated tariff cuts. Supplier concentration is extreme, with 91% of value controlled by state-backed players like Saudi Aramco and ADNOC, while the UAE led origins with 49.7% weight share, signaling heavy reliance on Middle Eastern bulk shipments. This analysis is based on processed 2025 Q1 Customs data from the yTrade database.

India Petroleum Gases Import (HS 2711) Background

What is HS Code 2711?

HS Code 2711 covers petroleum gases and other gaseous hydrocarbons, including liquefied natural gas (LNG) and liquefied petroleum gas (LPG). These products are critical for energy production, industrial processes, and household use, driving steady 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 petroleum gases import landscape is shifting, with key tariff reductions effective from May 2025. The basic customs duty (BCD) for non-automotive LPG (2711 19 10) will drop from 15% to 5%, while liquefied propane (2711 12 00) and butane rates will fall to 2.5% [Union Budget]. These changes aim to ease energy costs and align with India’s strategic push for affordable fuel access. Monitoring HS Code 2711 trade data is essential, as India’s import policies directly impact domestic energy security and industrial competitiveness. Vigilance is warranted to navigate transitional duties and compliance requirements in Q1 2025.

India Petroleum Gases Import (HS 2711) Price Trend

Key Observations

India's Petroleum Gases imports under HS code 2711 reached $9.91 billion in Q1 2025, marking a 7% decline from the previous quarter's total. The hs code 2711 value trend showed significant monthly volatility, with a sharp contraction in February followed by a strong recovery in March.

Price and Volume Dynamics

The quarter began strongly with $3.66 billion in January, but February's imports plummeted to $2.84 billion—a 22% month-over-month drop. This was followed by a robust 20% rebound in March to $3.41 billion. This volatility reflects typical market behavior in liquefied petroleum products, where importers often adjust procurement based on inventory cycles and anticipated policy changes. The March recovery suggests buyers were positioning for the upcoming regulatory shifts, building inventories ahead of the new tariff regime.

External Context and Outlook

The India Petroleum Gases Import trend was directly influenced by policy announcements in the Union Budget 2025-26 [Union Budget]. Customs duties on LPG (non-automotive) were slated to drop from 15% to 5%, while liquefied propane and butane saw reductions to 2.5%, effective May 1, 2025 (Union Budget). This created anticipatory buying behavior in March as importers sought to capitalize on lower costs ahead of the implementation. Looking ahead, these duty reductions are expected to sustain import momentum through Q2, particularly for propane and butane shipments.

India Petroleum Gases Import (HS 2711) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, India's import of HS Code 2711 in Q1 2025 is heavily concentrated on liquefied butanes, which account for over half of the weight share. This product, described as petroleum gases and other gaseous hydrocarbons liquefied as butanes, shows consistent unit pricing around 3.11 USD per kilogram, similar to liquefied propane at 3.14 USD per kilogram, indicating a focus on bulk energy commodities. An extreme price anomaly exists for ethylene, propylene, butylene, and butadiene at 331.77 USD per kilogram, but its minimal quantity isolates it from the main analysis pool.

Value-Chain Structure and Grade Analysis

The market structure for India HS Code 2711 import is primarily composed of bulk liquefied gases, with butanes and propane forming the core due to their high weight shares and uniform pricing. Minor codes like other liquefied petroleum gases show comparable unit prices around 3.50 USD per kilogram, reinforcing that this trade involves fungible commodities linked to global energy indices rather than differentiated manufactured goods. This suggests a straightforward value chain centered on raw material imports for energy use.

Strategic Implication and Pricing Power

For market players, the dominance of bulk commodities under HS Code 2711 trade data implies low pricing power, with costs driven by international market fluctuations. The recent duty reductions for propane and butane imports, as noted in Union Budget documents [indiabudget.gov.in], could lower entry barriers and increase import volumes, but strategic focus should remain on securing competitive supply contracts in a price-sensitive environment.

Check Detailed HS Code 2711 Breakdown

India Petroleum Gases Import (HS 2711) Origin Countries

Geographic Concentration and Dominant Role

In Q1 2025, the United Arab Emirates dominated India's Petroleum Gases imports with a 32.29% value share and a higher 49.68% weight share. This weight share exceeding value share points to bulk purchases of lower-value, raw Petroleum Gases, typical for energy commodities like liquefied natural gas under HS Code 2711. The high frequency share of 37.56% aligns with consistent, large-volume shipments, reinforcing UAE's role as a primary bulk supplier for India's energy needs.

Origin Countries Clusters and Underlying Causes

The top origins form two clear clusters based on India's Petroleum Gases import patterns. The bulk cluster includes UAE, Kuwait, and Saudi Arabia, where weight shares surpass value shares, indicating high-volume, low-cost shipments common for crude or unprocessed gases. Qatar stands out as a premium cluster with a 30.11% value share against an 11.39% weight share, suggesting imports of higher-grade or processed variants, possibly due to specialized LNG production. Minor players like the United States and Australia show low shares across metrics, reflecting niche or incidental supply roles in this market.

Forward Strategy and Supply Chain Implications

India's heavy reliance on Middle Eastern suppliers for Petroleum Gases imports poses supply chain risks, such as geopolitical instability affecting bulk flows. Diversifying sources could mitigate this, especially with upcoming tariff reductions on LPG and related products from May 2025, which may lower costs and encourage broader sourcing [CAClubIndia]. Monitoring HS Code 2711 trade data will be key to adapting strategies for stable energy imports amid these changes.

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

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India Petroleum Gases (HS 2711) Suppliers Analysis

Supplier Concentration and Dominance

In Q1 2025, the India Petroleum Gases Import suppliers market shows strong concentration. According to yTrade data, a small set of suppliers handles over 91% of the import value. These suppliers are high in both value and frequency, making them the core of the trade.

Strategic Supplier Clusters and Trade Role

The main suppliers, like SAUDI ARABIAN OIL COMPANY and ADNOC, point to a state-controlled market. Other groups include high-value low-frequency suppliers such as QATARENERGY, which likely manage large, occasional shipments, and low-value clusters with smaller, regular trades. The profile of HS code 2711 suppliers confirms a centralized sourcing approach.

Sourcing Strategy and Vulnerability

Indian importers face high dependency on a few state-backed suppliers, raising supply chain risks. However, [IndiaBudget] reports tariff cuts on LPG and related gases from May 2025, which may reduce costs and encourage diversification. Sourcing should prioritize long-term contracts with key players while monitoring policy changes for new opportunities.

Table: India Petroleum Gases (HS 2711) Top Suppliers List (Source: yTrade)

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Action Plan for Petroleum Gases Market Operation and Expansion

Strategic Supply Chain Overview

India Petroleum Gases Import is a bulk commodity market. Prices are driven by global energy indices and geopolitical stability. The hs code 2711 trade data confirms low product differentiation and uniform pricing for core items like butanes and propane.

Supply chain implications are significant. India relies heavily on a few state-backed Middle Eastern suppliers. This creates vulnerability to regional disruptions. The Petroleum Gases supply chain is built for high-volume, low-cost shipments but lacks diversification. Recent duty reductions may lower costs but do not address concentration risks.

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

• Monitor key supplier clusters in hs code 2711 trade data monthly to anticipate price shifts and secure volume discounts, because dependency on a few players requires proactive contract management.
• Track policy updates like the May 2025 tariff cuts using budget sources to identify new sourcing opportunities, as cost reductions can improve margin stability in a price-sensitive market.
• Analyze origin country data quarterly to diversify sources beyond the Middle East, mitigating geopolitical risks that threaten the Petroleum Gases supply chain.
• Use shipment frequency and value data to align inventory with supplier delivery patterns, preventing overstock or shortages in a bulk-driven market where timing impacts 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 Q1?

The 7% quarterly decline in India's Petroleum Gases imports was driven by volatile monthly trends, including a 22% drop in February followed by a 20% rebound in March. This reflects anticipatory buying ahead of announced duty reductions on propane and butane imports effective May 2025.

Q2. Who are the main origin countries of India Petroleum Gases (HS Code 2711) 2025 Q1?

The UAE dominated with a 32.29% value share, followed by Qatar at 30.11%. Kuwait and Saudi Arabia also featured prominently, forming a bulk-supplier cluster for India’s energy needs.

Q3. Why does the unit price differ across origin countries of India Petroleum Gases Import?

Price differences stem from product grade variations—Qatar’s higher-value share (30.11%) versus weight share (11.39%) indicates premium LNG, while UAE/Kuwait focus on bulk, lower-cost liquefied gases.

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

Importers should prioritize long-term contracts with key suppliers like Saudi Aramco and ADNOC while leveraging upcoming duty cuts to diversify sources and mitigate Middle East supply chain risks.

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

Suppliers like QatarEnergy can capitalize on India’s demand for high-grade LNG, while bulk-focused players (UAE, Saudi Arabia) must maintain competitive pricing amid India’s tariff-driven import surge.

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

India’s imports under HS Code 2711 primarily consist of bulk liquefied butanes and propane for energy use, with minor high-value variants like ethylene for specialized industrial applications.

Detailed Monthly Report

India HS2711 Import Snapshot 2025 JAN

India HS2711 Import Snapshot 2025 FEB

India HS2711 Import Snapshot 2025 MAR