India Petroleum Gases Import Market -- HS 2711 Trade Data & Price Trend (Q2 2025)

India Petroleum Gases Import (HS 2711) Key Takeaways

India’s petroleum gases imports under HS Code 2711 in Q2 2025 declined 4.3% to $8.87 billion as buyers delayed shipments ahead of tariff cuts, reflecting cautious market behavior. The market is dominated by bulk liquefied natural gas, with UAE and Qatar supplying over half the volume, exposing supply chain risks to regional geopolitics. Supplier concentration is high, with just a few traders handling 88% of import value, reinforcing reliance on intermediaries. This analysis, covering Q2 2025, is based on cleanly processed 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 petroleum gas (LPG), liquefied natural gas (LNG), propane, and butane. These products are critical for industries such as energy, manufacturing, and chemicals, where they serve as fuel feedstocks or raw materials. Global demand remains stable due to their versatility in both industrial and household applications.

Current Context and Strategic Position

India’s import policy for HS Code 2711 is undergoing significant changes in Q2 2025, with tariff reductions on liquefied propane (from 15% to 2.5%) and LPG for non-automotive use (from 15% to 5%) effective May 1, 2025 [Indian Budget]. These adjustments aim to lower input costs for domestic industries while maintaining regulatory oversight. India’s reliance on petroleum gases imports underscores its strategic need to balance energy security with competitive pricing. Monitoring HS Code 2711 trade data is essential for stakeholders to navigate these shifts and capitalize on emerging opportunities.

India Petroleum Gases Import (HS 2711) Price Trend

Key Observations

India's Petroleum Gases imports under HS Code 2711 totaled $8.87 billion in Q2 2025, declining 4.3% from the prior quarter. The monthly import value fell from $3.02 billion in April to $2.89 billion in June, reflecting cautious procurement ahead of tariff changes.

Price and Volume Dynamics

The India Petroleum Gases Import trend shows a clear downward trajectory through Q2, despite a strong rebound from February's $2.84 billion low. March's $3.41 billion peak represented post-winter inventory rebuilding, but values slipped consistently from April onward as buyers delayed commitments. This pattern aligns with typical energy sector behavior when anticipating policy shifts—importers minimized volumes before confirmed duty reductions took effect.

External Context and Outlook

The hs code 2711 value trend directly reflects India's tariff revisions effective May 1, 2025 [Union Budget]. Customs duties on liquefied propane and non-automotive LPG were slashed from 15% to 2.5% and 5% respectively (Union Budget), prompting importers to defer shipments until the new rates applied. This policy-driven volatility should stabilize in subsequent quarters as operators adjust to the reduced tax burden, though global energy prices remain a wildcard for overall import values.

India Petroleum Gases Import (HS 2711) HS Code Breakdown

Product Specialization and Concentration

In Q2 2025, India's import under HS Code 2711 is heavily concentrated on liquefied natural gas, which accounts for over 40% of the total import value, according to yTrade data. This sub-code, specifically natural gas, dominates with a high value share due to its large volume and consistent trade flows. The unit prices for other major sub-codes like liquefied butanes and propane are relatively uniform at around 1.6 USD per kilogram, indicating a standardized commodity market. An extreme price anomaly is present in the "other gaseous hydrocarbons" sub-code, with a unit price exceeding 1200 USD per kilogram, but it is isolated due to minimal quantity and not representative of the main market.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes can be grouped into two main categories: bulk liquefied gases (including natural gas, butanes, and propane) and specialized liquefied products (such as other n.e.c. codes). Bulk gases show similar unit prices and high trade volumes, confirming they are fungible commodities likely traded on global indices. The specialized products have slightly higher unit prices, around 2.4 USD per kilogram, suggesting minor value-add or grade variations, but the overall structure points to a market driven by bulk, undifferentiated goods rather than manufactured finishes.

Strategic Implication and Pricing Power

For market players, the commodity nature of these imports means pricing power is limited and tied to external market indices, with margins likely thin due to high competition. Strategic focus should be on securing reliable supply chains and leveraging scale. Recent tariff reductions, as noted in the [Indian Budget] for sub-codes like propane and butanes, could lower costs and increase import attractiveness, supporting growth in India's HS Code 2711 import activities. Analyzing HS Code 2711 trade data reveals opportunities for cost savings through these policy changes.

Check Detailed HS Code 2711 Breakdown

India Petroleum Gases Import (HS 2711) Origin Countries

Geographic Concentration and Dominant Role

In Q2 2025, the United Arab Emirates is the top source for India's Petroleum Gases imports, holding 28.81% of the value and 38.91% of the weight. The higher weight share compared to value indicates that UAE supplies bulk, lower-cost variants. Qatar is close in value at 29.16% but has a lower weight share of 17.55%, suggesting a focus on higher-grade products. UAE also leads in shipment frequency at 33.44%, showing regular, high-volume trade. Other countries like Kuwait and Saudi Arabia follow with significant weight shares, reinforcing the region's dominance.

Origin Countries Clusters and Underlying Causes

The origin countries form two main clusters based on India's Petroleum Gases import data. First, the Volume/Hub Cluster includes UAE, Kuwait, and Saudi Arabia, with high weight shares (38.91%, 18.74%, and 12.90% respectively), driven by their extensive oil and gas production capabilities supplying bulk shipments. Second, the High-Yield Cluster is led by Qatar, where the value share of 29.16% exceeds its weight share, pointing to exports of premium, processed gases. Countries like the US and Oman have lower, more balanced shares, acting as secondary sources with less frequent shipments.

Forward Strategy and Supply Chain Implications

India's heavy reliance on Middle Eastern countries for Petroleum Gases imports poses supply chain risks due to regional geopolitics. The tariff reductions on LPG and propane under HS Code 2711, effective May 1, 2025, as per the [Indian Budget], could lower costs and increase import volumes from current partners like UAE and Qatar. To reduce dependency, diversifying sources to include countries with growing shares like the US or exploring new suppliers is advisable. Ensuring efficient logistics for high-frequency shipments from UAE will be key to maintaining supply chain stability for India's energy needs.

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 Q2 2025, the market for India Petroleum Gases Import suppliers shows high concentration, with a small group handling the bulk of trade. According to yTrade data, the dominant suppliers account for 88.05% of the total import value and 78.37% of shipment frequency, indicating that most transactions involve high-volume, regular deliveries from a few key players. This structure points to a typical trade pattern where large, consistent orders define the import flow for this commodity.

Strategic Supplier Clusters and Trade Role

The dominant suppliers, including names like PETCO TRADING and QATAR ENERGY MARKETING, operate as trading entities, suggesting an intermediated market where agents facilitate most deals. Other clusters contribute smaller shares: one group handles infrequent but high-value shipments, while others manage frequent low-value or rare small transactions. The profile of HS code 2711 suppliers reinforces this agent-driven approach, with trading companies central to the supply chain for petroleum gases.

Sourcing Strategy and Vulnerability

For importers in India, this supplier structure implies reliance on a narrow base, raising supply chain risks if disruptions occur with key traders. However, the recent tariff reductions for HS code 2711, as reported in the [Indian Budget], offer an opportunity to lower costs and potentially diversify sources. Importers should focus on securing stable relationships with reliable traders while leveraging the new duty rates to optimize sourcing strategies.

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

Check Full Petroleum Gases Supplier lists

Action Plan for Petroleum Gases Market Operation and Expansion

Strategic Supply Chain Overview

India Petroleum Gases Import is a commodity market. Prices are driven by global indices and bulk volume. Recent hs code 2711 trade data confirms minimal pricing power for importers. The main risk is high geographic concentration on Middle Eastern suppliers. This creates vulnerability to regional geopolitics. The Petroleum Gases supply chain is dominated by a few large trading companies. This structure prioritizes reliable, high-volume shipments over product differentiation.

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

• Diversify your supplier base beyond the dominant Middle Eastern cluster. Use hs code 2711 trade data to identify and qualify new suppliers from regions like the US. This reduces geopolitical risk and increases negotiation leverage for your India Petroleum Gases Import operations.
• Leverage the recent tariff reductions on propane and butanes. Immediately review your procurement contracts to factor in the new, lower duty rates. This directly lowers your landed cost and improves profit margins on relevant shipments.
• Prioritize logistics planning for high-frequency shipments from the UAE. Analyze port data and shipping schedules to optimize inventory cycles. This prevents stock-outs and ensures stability for your core Petroleum Gases supply chain.
• Use supplier frequency and value data in contract negotiations. Focus on securing long-term agreements with the most reliable high-volume traders. This guarantees supply security and locks in favorable terms in a volatile market.

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 Q2?

India's Petroleum Gases imports declined 4.3% in Q2 2025 due to buyers delaying shipments ahead of tariff reductions on propane and LPG, which took effect May 1, 2025.

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

The UAE (28.81% value share) and Qatar (29.16%) dominate India’s imports, with UAE supplying bulk volumes and Qatar focusing on higher-grade products.

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

Price differences stem from product specialization—UAE and Kuwait supply cheaper bulk liquefied gases, while Qatar’s higher-value share reflects premium processed gases.

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

Importers should secure stable relationships with dominant traders like PETCO TRADING while leveraging tariff cuts to diversify sources and mitigate supply chain risks.

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

Middle Eastern suppliers (UAE, Qatar) benefit from high reliance, but India’s tariff cuts may incentivize new suppliers to compete in this commodity-driven market.

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

India primarily imports bulk liquefied gases like natural gas (40% of import value) for energy and industrial use, with standardized pricing reflecting their commodity nature.

Detailed Monthly Report

India HS2711 Import Snapshot 2025 APR

India HS2711 Import Snapshot 2025 MAY

India HS2711 Import Snapshot 2025 JUN