India Petroleum Oils HS2710 Import Data 2025 May Overview

India Petroleum Oils (HS 2710) 2025 May Import: Key Takeaways

India’s petroleum oils (HS Code 2710) imports in May 2025 show heavy reliance on Russia, which dominates with 30.56% value share, supplying standard-grade crude at consistent pricing. Middle East and East Asian partners offer cost-effective alternatives, with the former providing cheaper crude and the latter more refined products. Rising import duties (20% BCD + 10% surcharge) may pressure buyers, urging diversification to mitigate supply risks. This analysis, covering May 2025, is based on verified customs data from the yTrade database.

India Petroleum Oils (HS 2710) 2025 May Import Background

What is HS Code 2710?

HS Code 2710 covers petroleum oils and oils obtained from bituminous minerals (other than crude), including preparations containing ≥70% petroleum oils. These products are critical inputs for industries like lubricants, fuel blending, and chemical manufacturing, driving stable global demand due to their versatility in industrial applications. India’s refining capacity and energy needs make this HS code strategically significant for both domestic consumption and trade.

Current Context and Strategic Position

In 2025, India’s import landscape for HS Code 2710 petroleum oils faces dual policy shifts. Domestically, the government restructured tariff items under this code, imposing a 20% Basic Customs Duty + 10% Social Welfare Surcharge effective May 1, 2025 [Union Budget]. Internationally, the U.S. imposed an additional 25% tariff on certain Indian imports, including petroleum products, raising total duties to 50% [International Trade Insights]. These changes underscore India’s balancing act between domestic energy security and global trade tensions, necessitating close market monitoring for India petroleum oils HS Code 2710 import 2025 May flows.

India Petroleum Oils (HS 2710) 2025 May Import: Trend Summary

Key Observations

In May 2025, India's import of Petroleum oils under HS Code 2710 reached 1.21 billion USD with a volume of 602.48 million kg, indicating a notable pullback from the previous month's highs.

Price and Volume Dynamics

The import trend from January to May 2025 displayed sharp fluctuations, with value and volume both declining in May compared to April—down approximately 16% in value and 20% in volume. This volatility aligns with typical petroleum industry stock cycles, where imports often adjust based on refining capacity utilization and inventory replenishment patterns, rather than sustained demand shifts.

External Context and Outlook

The May downturn coincides with India's implementation of revised tariff policies for HS Code 2710, including a 20% basic customs duty and 10% social welfare surcharge effective May 1, 2025 [Union Budget]. Looking ahead, the additional 25% U.S. tariffs on Indian petroleum imports set for August 2025 (International Trade Insights) may further constrain trade flows, prompting importers to recalibrate strategies amid rising costs.

India Petroleum Oils (HS 2710) 2025 May Import: HS Code Breakdown

Product Specialization and Concentration

According to yTrade data, the import of India Petroleum oils under HS Code 2710 in May 2025 is dominated by sub-code 27101971, described as petroleum oils not light oils and preparations, which holds a 50% value share with a low unit price of $1.95 per kilogram, indicating a bulk commodity specialization. Two sub-codes, 27101959 and 27101989, show extreme unit price anomalies at approximately $55 per kilogram, suggesting possible specialty grades, and are isolated from the main analysis pool due to their outlier nature.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two groups: standard bulk refined oils with unit prices around $1-2 per kilogram, such as 27101990 and 27101979, and light oils with slightly higher value, like 27101229 at $1.08 per kilogram. This structure points to a trade in fungible bulk commodities, where products are largely undifferentiated and likely tied to global price indices, with minimal value-add stages evident in the data.

Strategic Implication and Pricing Power

For importers of India Petroleum oils HS Code 2710, the commodity nature implies low pricing power and reliance on market indices for cost management. [International Trade Insights] reports additional US tariffs on such imports, which may increase costs and necessitate strategic sourcing adjustments to maintain competitiveness in 2025. (International Trade Insights)

Check Detailed HS 2710 Breakdown

India Petroleum Oils (HS 2710) 2025 May Import: Market Concentration

Geographic Concentration and Dominant Role

For India Petroleum oils HS Code 2710 Import in 2025 May, RUSSIA is the dominant source with 30.56% value share and 30.27% weight share, showing it supplies large volumes of standard grade oil. The close match between value and weight ratios points to consistent pricing near 2.02 USD/kg, typical for commodity crude imports.

Partner Countries Clusters and Underlying Causes

Middle East nations like UAE, Qatar, Saudi Arabia, Oman, and Kuwait form a cluster with high weight shares but lower value ratios, indicating imports of cheaper crude oil. East Asian partners such as South Korea and Singapore have higher value ratios, suggesting more refined products. Russia stands alone as the top supplier due to its energy export focus.

Forward Strategy and Supply Chain Implications

India's increased import duties of 20% Basic Customs Duty plus 10% Social Welfare Surcharge, effective from May 1, 2025 [India Budget], may raise costs for buyers. To manage risks from heavy reliance on Russia and potential trade tensions, companies should diversify sources toward Middle East and Asian partners for stable supply.

Table: India Petroleum Oils (HS 2710) Top Partner Countries (Source: yTrade)

Get Complete Partner Countries Profile

India Petroleum Oils (HS 2710) 2025 May Import: Action Plan for Petroleum Oils Market Expansion

Strategic Supply Chain Overview

India Petroleum oils Import 2025 May under HS Code 2710 operates as a bulk commodity market. Price is driven by global crude indices and grade differentiation. Most imports are standard bulk refined oils priced near $1-2/kg. High-value specialty grades exist but are rare. Geopolitical factors, like new US tariffs and India's own import duties, add cost pressure. Supply chain implications focus on security and diversification. Heavy reliance on Russia (30%+ share) creates vulnerability. Buyers are concentrated, with a few large players dominating value. This demands stable partner relationships but also highlights exposure to policy shifts.

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

• Track real-time unit prices by HS sub-code (e.g., 27101971 vs. 27101229) to spot grade-specific cost changes. This helps negotiate better terms by understanding product value.
• Use buyer transaction frequency data to forecast demand cycles and optimize inventory levels. This prevents overstock or shortages in a volatile market.
• Diversify sourcing away from high-risk origins like Russia by increasing orders from Middle East and Asian partners. This reduces exposure to trade disputes and duty hikes.
• Monitor policy updates from sources like International Trade Insights for tariff changes. This allows proactive cost adjustment and avoids surprise expenses.
• Analyze high-value, low-frequency buyers for potential long-term contracts. This secures stable revenue despite market fluctuations.

Take Action Now —— Explore India Petroleum oils Import Data

Frequently Asked Questions

Q1. What is driving the recent changes in India Petroleum oils Import 2025 May?

The May 2025 decline in imports (16% value, 20% volume) reflects typical petroleum stock cycles and coincides with India’s new 20% customs duty and 10% surcharge on these imports.

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

Russia dominates with a 30.56% value share, followed by Middle East suppliers like UAE and Qatar, which offer cheaper crude, and East Asian partners like South Korea supplying refined products.

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

Price differences stem from product grades: bulk commodity oils (e.g., sub-code 27101971 at $1.95/kg) dominate, while rare specialty grades (e.g., 27101959 at ~$55/kg) are outliers.

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

Importers must prioritize relationships with high-value buyers (78.41% of market value) and diversify sources to mitigate risks from Russia’s dominance and rising US tariffs.

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

Suppliers like Russia benefit from stable bulk demand, while Middle East and Asian exporters gain opportunities as India seeks cost-effective alternatives amid tariff pressures.

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

Most imports are fungible bulk commodities (e.g., standard refined oils) for refining or distribution, with minimal value-add stages evident in the trade data.