New Delhi: The Centre has announced a full customs duty exemption on a range of critical petrochemical products till June 30, 2026, as part of a targeted relief measure to address supply disruptions triggered by the ongoing West Asia conflict.
According to a notification from the Ministry of Finance, the decision aims to ensure uninterrupted availability of key petrochemical inputs for domestic industries, reduce cost pressures on downstream sectors, and maintain supply stability in the country.
The exemption is expected to benefit industries heavily dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments. The move is also likely to ease price pressures for consumers of finished goods.
The list of exempted products includes key chemicals and industrial inputs such as methanol, anhydrous ammonia, toluene, styrene, vinyl chloride monomer, monoethylene glycol, phenol, acetic acid, purified terephthalic acid, and a wide range of polymers and resins including polyethylene, polypropylene, PVC, polystyrene, ABS, and synthetic rubbers like polybutadiene and styrene butadiene.
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The decision comes against the backdrop of disruptions in global supply chains due to the ongoing conflict in West Asia, which has affected shipping routes and raised concerns over imports of critical commodities such as crude oil, natural gas, and fertilisers. Global crude prices have surged significantly since the escalation of hostilities in the region, adding to inflationary pressures.
In recent weeks, the government has also taken additional steps to cushion the domestic economy from rising fuel costs, including cuts in excise duty on petrol and diesel, as well as export duties on diesel and aviation turbine fuel.
The latest customs duty exemption is being seen as a short-term but strategic intervention to stabilise industrial supply chains and support economic resilience amid continued global uncertainty.
