India Petroleum Oils Import Market -- HS 2710 Trade Data & Price Trend (Q1 2025)

India Petroleum Oils Import (HS 2710) Key Takeaways

India’s petroleum oils imports under HS Code 2710 in Q1 2025 were dominated by bulk heavy oils (44.9% value share), with volatile monthly trends showing a rebound to $1.3B in March after a February dip. The market is highly concentrated, with 83% of import value controlled by a few key suppliers, while the UAE, Russia, and South Korea supplied 58.7% of total value. This analysis is based on cleanly processed customs data from the yTrade database for 2025 Q1.

India Petroleum Oils Import (HS 2710) 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 transportation, energy, and manufacturing, driving consistent global demand due to their role in fuel production and industrial applications. India’s reliance on imports under this code reflects its growing energy needs and refining capacity constraints.

Current Context and Strategic Position

India’s petroleum oils import policy under HS Code 2710 saw significant updates in Q1 2025, with tariff item 2710 91 00 restructured into three new sub-items effective May 1, 2025, alongside a 20% Basic Customs Duty (BCD) and 10% Social Welfare Surcharge (SWS) [Union Budget]. Certain petroleum solvents under this code remain restricted, requiring compliance with specific import conditions [EximGuru]. As the 6th largest global importer of these products, India’s HS Code 2710 trade data highlights reliance on key suppliers like the U.S. and Turkey, necessitating close monitoring of tariff shifts and policy updates to mitigate supply chain risks.

India Petroleum Oils Import (HS 2710) Price Trend

Key Observations

India's petroleum oils import trend under HS Code 2710 in Q1 2025 displayed significant volatility, with values starting at $1.18 billion in January, falling to $967.10 million in February, and rebounding to $1.30 billion in March. This resulted in a net increase over the quarter, highlighting shifting import dynamics driven by policy anticipation and market adjustments.

Price and Volume Dynamics

The India Petroleum oils Import trend saw a sharp decline in February, likely due to temporary market hesitancy or logistical delays, followed by a strong recovery in March. This rebound aligns with typical industry stock-building cycles ahead of increased seasonal demand in the latter half of the year, suggesting importers were positioning for stronger consumption periods. The sequential growth from February to March indicates renewed confidence and adaptive strategies in response to external factors.

External Context and Outlook

The observed volatility is directly influenced by upcoming regulatory changes, including a tariff restructuring for HS Code 2710 effective May 2025, which imposes higher basic customs duties and social welfare surcharges from February to April [Union Budget]. Additionally, import restrictions on certain petroleum products under this code, as noted in official notifications, have prompted importers to accelerate shipments ahead of the changes (APEDA). Looking ahead, the hs code 2710 value trend may stabilize post-May as markets adjust to the new tariff regime, but near-term fluctuations could persist due to global oil price movements and domestic policy enforcement.

India Petroleum Oils Import (HS 2710) HS Code Breakdown

Product Specialization and Concentration

In 2025 Q1, India's import of petroleum oils under HS Code 2710 is heavily concentrated in a specific product grade. The dominating sub-code is 27101971, described as 'Petroleum oils and oils from bituminous minerals, not containing biodiesel, not crude, not waste oils; preparations n.e.c, containing by weight 70% or more of petroleum oils or oils from bituminous minerals; not light oils and preparations'. According to yTrade data, this sub-code holds 44.89% of the import value and 50.93% of the weight, with a unit price of 2.33 USD per kilogram, indicating its role as the primary bulk import. An anomaly is isolated for sub-code 27101949, which has a null unit price and is excluded from further analysis.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two clear categories based on product grade: light oils and heavy or standard oils. Light oils, such as 27101229 and 27101221, have unit prices ranging from 2.48 to 2.85 USD per kilogram and are specified for lighter variants. Heavy oils, including most other sub-codes like 27101961 and 27101979, typically have unit prices between 2.29 and 2.89 USD per kilogram, with exceptions like 27101990 at 5.11 USD per kilogram suggesting a premium grade. This structure shows a trade in largely fungible bulk commodities, as the high volume and similar prices for standard oils align with global commodity markets, but the presence of higher-priced items indicates some product differentiation.

Strategic Implication and Pricing Power

For importers and market players, the heavy reliance on bulk standard oils under India's HS Code 2710 import implies limited pricing power, with costs likely driven by external factors like global oil indices. Strategies should focus on securing cost-effective, stable supplies for the dominant grades, while noting the niche opportunities in premium variants. Analysis of HS Code 2710 trade data suggests that import volumes are robust, but buyers must monitor market fluctuations closely.

Check Detailed HS Code 2710 Breakdown

India Petroleum Oils Import (HS 2710) Origin Countries

Geographic Concentration and Dominant Role

The United Arab Emirates (UAE) is India's dominant petroleum oils supplier for Q1 2025, accounting for 22.1% of the total import value. This value share is notably lower than its 40.9% share of total import weight, indicating the UAE primarily supplies bulk, lower-value petroleum oils to India. This trade pattern is typical for crude or base mineral oils. Russia and South Korea are the next largest partners by value, holding 19.79% and 16.77% shares, respectively. The high shipment frequency from the UAE (15.25% of all transactions) further confirms its role as a consistent, large-volume supplier for this commodity.

Origin Countries Clusters and Underlying Causes

The supplier base forms two clear clusters. The first is a volume cluster, consisting of the UAE, Russia, and Singapore. These three partners collectively account for over 73% of the total import weight, underscoring India's heavy reliance on them for bulk shipments of petroleum oils. The second is a high-yield cluster, featuring Qatar and Saudi Arabia. While they contribute a smaller volume (3.11% and 1.88% of total weight, respectively), their value shares are significantly higher (4.70% and 3.86%), suggesting they supply more refined, higher-value petroleum products. The United States and China Taiwan form a smaller, mixed cluster with moderate activity across all metrics.

Forward Strategy and Supply Chain Implications

India's heavy import dependence on a small group of partners for a critical commodity like petroleum oils creates notable supply chain vulnerability, particularly to geopolitical disruptions affecting the Persian Gulf region. The impending tariff restructuring for HS Code 2710, effective from 1st May 2025 as per the [Union Budget], could influence future sourcing costs and patterns. A key forward strategy must involve diversifying sources to mitigate concentration risk and potentially increasing domestic refining capacity to add more value to imported crude oils, aligning with the product mix seen from higher-yield partners like Qatar.

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

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India Petroleum Oils (HS 2710) Suppliers Analysis

Supplier Concentration and Dominance

According to yTrade data, the India petroleum oils import suppliers market in 2025 Q1 is highly concentrated, with a small group of high-value, high-frequency suppliers dominating 83% of the total import value. This group handles 46% of all shipments but accounts for 75% of the quantity and 90% of the weight, indicating that the typical trade involves large, regular deliveries from key players.

Strategic Supplier Clusters and Trade Role

The profile of HS code 2710 suppliers shows that the dominant high-value, high-frequency cluster includes major entities like Shell Eastern Trading and Ergon Refining, pointing to an intermediated or agent-driven market structure. Other clusters play smaller roles: high-value, low-frequency suppliers contribute 15% of value with less frequent, possibly bulk orders, while low-value clusters handle numerous small shipments but minimal impact on overall trade value.

Sourcing Strategy and Vulnerability

For Indian importers, this supplier structure means heavy reliance on a few intermediated suppliers, increasing vulnerability to price shocks or supply disruptions. The news of tariff changes and import restrictions under HS code 2710, as noted in government sources like the Union Budget, could raise costs and require stricter compliance [Union Budget]. Diversifying sources or securing long-term contracts may mitigate risks.

Table: India Petroleum Oils (HS 2710) Top Suppliers List (Source: yTrade)

Check Full Petroleum oils Supplier lists

Action Plan for Petroleum Oils Market Operation and Expansion

Strategic Supply Chain Overview

India's Petroleum oils Import market is a bulk commodity trade. Its price is driven by global oil indices and product grade differentials. The hs code 2710 trade data shows heavy reliance on standard heavy oils. This creates high exposure to geopolitical risk in key supply regions like the Persian Gulf.

The Petroleum oils supply chain faces critical concentration risks. A few large suppliers control most volumes. Sourcing is highly concentrated with the UAE, Russia, and Singapore. This structure makes India's energy costs vulnerable to external shocks and policy changes like the upcoming May 2025 tariff revision.

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

• Analyze hs code 2710 trade data monthly to track premium product premiums. Target imports of higher-value grades like those from Qatar when margins justify it. This directly increases profit per unit.
• Use supplier transaction data to identify and qualify backup suppliers outside the dominant cluster. Start negotiations with firms in the high-value, low-frequency segment. This reduces supply chain vulnerability to disruptions from key partners.
• Monitor shipment weight and value data from the UAE and Russia for cost forecasting. Build financial models that factor in their bulk pricing. This enables accurate budget planning and protects against sudden cost inflation.
• Audit your product mix against the hs code sub-categories quarterly. Shift procurement toward the dominant 27101971 code for cost efficiency. This ensures you are buying the most cost-effective bulk product for your needs.
• Develop a scenario plan using origin country data for geopolitical events. Model the impact of supply shocks from the Persian Gulf region. This allows for rapid procurement pivots to maintain operational continuity.

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 Q1?

India's petroleum oils import in Q1 2025 saw volatility due to policy anticipation, with a sharp February dip followed by a March rebound. The trend reflects stock-building ahead of regulatory changes, including higher tariffs effective May 2025.

Q2. Who are the main origin countries of India Petroleum oils (HS Code 2710) 2025 Q1?

The UAE (22.1% of import value), Russia (19.79%), and South Korea (16.77%) dominate India’s petroleum oils imports. The UAE alone accounts for 40.9% of total import weight, indicating bulk supply.

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

Price differences stem from product grades: bulk heavy oils (e.g., UAE’s 27101971 at 2.33 USD/kg) contrast with premium variants (e.g., 27101990 at 5.11 USD/kg) from Qatar or Saudi Arabia.

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

Importers must secure stable bulk supplies from dominant suppliers like Shell Eastern Trading while diversifying to mitigate risks from high supplier concentration (83% value share).

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

Suppliers in bulk-focused markets (UAE, Russia) have steady demand, while high-yield players (Qatar, Saudi Arabia) can leverage niche opportunities for premium grades.

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

India imports petroleum oils primarily as bulk commodities for refining and energy production, with some premium grades likely used for specialized industrial applications.

Detailed Monthly Report

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