India Petroleum Oils Import Market -- HS 2710 Trade Data & Price Trend (Q2 2025)

India Petroleum Oils Import (HS 2710) Key Takeaways

India’s petroleum oils imports under HS Code 2710 surged 12.7% to $3.91B in Q2 2025, driven by bulk commodity trades dominated by sub-code 27101971 (44% value share). The market is highly concentrated, with Russia supplying 30.6% of imports and a handful of suppliers controlling 80% of trade, exposing India to supply chain risks. Unit prices ranged from $0.84 to $2.59/kg for standard bulk oils, with a high-grade outlier at $19.55/kg, reflecting minimal value-add stages. Volatility emerged post-May due to new tariffs, including a 20% customs duty, prompting importers to adjust procurement. This analysis covers Q2 2025 and is based on cleanly processed customs data from the yTrade database.

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 such as manufacturing, transportation, and energy, driving consistent global demand due to their versatility and essential role in industrial processes.

Current Context and Strategic Position

In 2025, India's import policy for HS Code 2710 underwent significant changes, including the substitution of tariff item 2710 91 00 into three new sub-items and the imposition of a 20% Basic Customs Duty (BCD) plus a 10% Social Welfare Surcharge (SWS) [Union Budget]. India's petroleum oils import market remains strategically vital, with over 40,000 shipments recorded in 2023–2024, reflecting a 13% growth. The U.S. and Turkey are key suppliers, while India also exports processed variants under this code. Given these dynamics, monitoring India's petroleum oils import trends and HS Code 2710 trade data is essential for stakeholders navigating this evolving landscape.

India Petroleum Oils Import (HS 2710) Price Trend

Key Observations

India's petroleum oils imports under HS code 2710 reached $3.91 billion in Q2 2025, marking a 12.7% sequential increase from Q1's $3.47 billion. This hs code 2710 value trend reflects robust quarterly demand, with April's $1.44 billion representing the period's peak.

Price and Volume Dynamics

The India Petroleum oils Import trend showed notable volatility within the quarter. After a strong March ($1.30B) and April peak, values moderated to $1.21B in May and $1.26B in June. This pullback aligns with the implementation of new tariff sub-items effective May 1, 2025, which likely prompted importers to adjust procurement timing and volumes [Union Budget]. The sequential softening suggests market adaptation to the updated duty structure, though June’s slight rebound indicates sustained underlying demand.

External Context and Outlook

The tariff reorganization—creating three new sub-items under 2710 91 00—introduced additional compliance layers and potential cost impacts, contributing to the observed monthly fluctuations [Union Budget]. Concurrently, the U.S. imposition of a 25% additional tariff on certain Indian imports [International Trade Insights] may indirectly affect trade flows by altering global competitiveness. Looking ahead, import activity is expected to stabilize as market participants fully adapt to the new duty framework, though external trade tensions remain a watchpoint for supply chain strategies.

India Petroleum Oils Import (HS 2710) HS Code Breakdown

Product Specialization and Concentration

According to yTrade data for India's HS Code 2710 imports in Q2 2025, the market is heavily concentrated on sub-code 27101971, which covers petroleum oils not light oils and preparations. This sub-code holds a 44% value share and 45% weight share, with a unit price of 1.93 USD per kilogram, indicating it is the core bulk import. An extreme price anomaly is present in sub-code 27101959, isolated from the main analysis due to its significantly higher unit price of 19.55 USD per kilogram, suggesting a specialized or high-grade product that distorts the overall average.

Value-Chain Structure and Grade Analysis

The non-anomalous sub-codes fall into two clear categories based on grade and form. Bulk not light oils, including codes like 27101990 and 27101979, dominate with unit prices ranging from 0.84 to 2.59 USD per kilogram, representing standard commodity trades tied to weight-based pricing. Light oils sub-codes such as 27101229 and 27101221 have even lower unit prices around 1.31-1.92 USD per kilogram, reinforcing a market structure focused on fungible bulk commodities rather than differentiated manufactured goods, with minimal value-add stages evident in the data.

Strategic Implication and Pricing Power

Analyzing HS Code 2710 trade data reveals low pricing power for importers due to the commodity nature of these petroleum oils, where competition is based on volume and cost efficiency. The recent Indian tariff changes, including a 20% basic customs duty and 10% surcharge effective from early 2025 [Union Budget], may increase import costs and shift strategic focus towards optimizing supply chains and hedging against price volatility in bulk purchases. (Union Budget)

Check Detailed HS Code 2710 Breakdown

India Petroleum Oils Import (HS 2710) Origin Countries

Geographic Concentration and Dominant Role

Russia is the dominant supplier of Petroleum oils to India in Q2 2025, accounting for 30.62% of the import value and 31.58% of the weight. The close alignment between value and weight shares indicates bulk trade of standard-grade petroleum oils, typical for commodity energy products. The low frequency of shipments (1.35%) supports this, pointing to large, infrequent deliveries common in crude or heavy fuel oil imports. This concentration highlights India's reliance on Russia for a significant portion of its petroleum needs under HS Code 2710.

Origin Countries Clusters and Underlying Causes

The origin countries form three clusters based on trade profiles. The High-Yield Cluster includes Oman and the United States, where value shares exceed weight shares (e.g., Oman: 3.33% value vs. 1.74% weight), suggesting imports of higher-grade or refined petroleum products. The Volume/Hub Cluster features the United Arab Emirates and Kuwait, with weight shares dominating value (e.g., UAE: 13.14% weight vs. 9.61% value), indicating bulk shipments of lower-value crude oils. The Transactional Cluster is led by South Korea, with a high frequency share (13.95%) relative to value, implying frequent, smaller shipments of processed oils or lubricants, likely for industrial or retail distribution.

Forward Strategy and Supply Chain Implications

India's heavy dependence on Russia for petroleum oils poses supply chain risks due to geopolitical uncertainties. Diversifying sourcing towards clusters like the High-Yield or Transactional groups could mitigate this, ensuring stable access to varied grades. The recent tariff changes, including a 20% Basic Customs Duty and 10% Social Welfare Surcharge on HS Code 2710 imports [Union Budget], may increase costs, making it prudent to explore partners with favorable trade terms. This aligns with the need for a resilient strategy in India's petroleum oils import landscape.

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

In 2025 Q2, the India petroleum oils import suppliers market is highly concentrated, with a small group of key players dominating trade. According to yTrade data, suppliers with high value and high frequency shipments account for over 80% of the total import value, making them the core of the market. These suppliers handle the majority of volume and value, defining the typical trade as large, regular deliveries of petroleum oils to India.

Strategic Supplier Clusters and Trade Role

The remaining supplier groups include those with high value but low frequency, contributing about 16% of value, and low value groups with higher or lower frequency, each under 2% of value. The profile of HS code 2710 suppliers in the dominant group, such as major oil corporations, points to a state-controlled or centralized market structure. This suggests that trade is driven by large, established entities rather than intermediaries or direct manufacturers, with other clusters serving niche or supplemental roles.

Sourcing Strategy and Vulnerability

For importers in India, this supplier structure means high dependence on a few key players, increasing vulnerability to supply disruptions or price shifts. Strategic focus should prioritize securing stable contracts with dominant suppliers while monitoring for diversification opportunities. The high customs duties, such as the 20% basic duty plus 10% surcharge noted in official sources like the Union Budget, add cost pressures, reinforcing the need for careful duty management in sourcing decisions.

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

The India Petroleum oils Import market is defined by commodity-driven pricing. Core price drivers are product grade and geopolitical risk. Hs code 2710 trade data shows bulk trades dominate with low pricing power. Heavy reliance on Russia introduces significant supply chain risks. Recent tariff hikes increase import costs. The Petroleum oils supply chain must prioritize supply security and cost efficiency. Diversification is key to managing these pressures.

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

• Use hs code 2710 trade data to identify and engage suppliers from High-Yield clusters like Oman. This secures access to higher-grade products and improves margin potential.
• Analyze supplier frequency data to optimize order cycles and inventory levels. This prevents overstock and reduces holding costs in the volatile market.
• Monitor geopolitical events and trade data to diversify sourcing away from high-risk origins. This mitigates supply disruptions and ensures stable imports.
• Leverage trade data to negotiate better terms with dominant suppliers. This stabilizes costs and strengthens long-term supply agreements.
• Implement duty optimization strategies using detailed hs code analysis. This minimizes the impact of tariff changes on overall import expenses.

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 Q2?

India’s petroleum oils imports surged 12.7% sequentially to $3.91B in Q2 2025, peaking in April ($1.44B) before moderating due to new tariff adjustments effective May 1, 2025. The volatility reflects importers adapting to updated duty structures, including a 20% basic customs duty and 10% surcharge.

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

Russia dominates with 30.62% of import value, followed by the UAE (9.61%) and Oman (3.33%). These three account for nearly half of India’s petroleum oils imports by value, with Russia also leading in weight share (31.58%).

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

Price differences stem from product grade variations: bulk crude oils (e.g., from UAE/Kuwait) trade at $0.84–2.59/kg, while high-grade or refined products (e.g., from Oman/US) command higher prices. Anomalous sub-code 27101959 ($19.55/kg) further skews averages.

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

Importers should prioritize securing contracts with dominant suppliers (80% of market value) to ensure stability, while exploring diversification to mitigate risks from geopolitical or tariff shifts. Cost optimization is critical under the new 30% combined duty burden.

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

Suppliers in Russia and the UAE benefit from entrenched bulk trade roles, while high-yield exporters (e.g., Oman/US) can leverage demand for premium grades. Frequent smaller shipments (e.g., South Korea) cater to niche industrial needs.

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

India’s imports under HS Code 2710 are primarily bulk commodity-grade petroleum oils for energy and industrial use, with minimal value-add stages. Light oils (lower unit prices) and specialized grades serve distinct downstream applications.

Detailed Monthly Report

India HS2710 Import Snapshot 2025 APR

India HS2710 Import Snapshot 2025 MAY

India HS2710 Import Snapshot 2025 JUN