Centre Waives Customs Duty On Key Petrochemicals Till June 30 Amid West Asia Crisis

 

New Delhi : In light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains, the Government of India has decided to provide full Customs Duty exemption on critical petrochemical products till 30th June, 2026, the Finance Ministry said on Thursday.

This measure, according to the ministry, has been taken as temporary and targeted relief to ensure the continued availability of critical petrochemical inputs for the domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country.

"The exemption is expected to benefit a wide range of sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments,” the official statement said.

 

This will also provide relief to consumers of final products, according to the government. Some of the petrochemical products in the list are Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Methanol (methyl alcohol), Isopropyl alcohol, Monoethylene Glycol (MEG), and Phenol.

The list also includes: Acetic acid, Vinyl acetate monomer, Purified Terephthalic Acid (PTA), Ammonium nitrate, polymers of ethylene (including Ethylene-vinyl acetate), epoxy resins, formaldehyde, Urea-formaldehyde, Melamine-formaldehyde, and Phenol-formaldehyde.

 

Disruption in shipping routes amid the West Asia war has raised concerns over imports of fertiliser, crude oil and natural gas. India is a major importer of fertiliser and petroleum.

Global crude prices have risen by almost 50 per cent since the United States and Israel launched military strikes against Iran on February 28, triggering sweeping retaliation from Tehran.

The government had last week slashed excise duty on petrol and diesel by Rs 10 a litre as it looked to shield consumers from the impact of rising global crude prices amid the ongoing war, also imposed an export duty of Rs 21.50 per litre on diesel and Rs 29.50 per litre on Aviation Turbine Fuel (ATF). Excise duty on petrol has been slashed to Rs 3 a litre, while on diesel it is zero currently.

 

The Centre had also decided last month to restore the rates and value caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for all eligible export products with effect from March 23, according to the Ministry of Commerce and Industry.

In another step to reduce the impact of the ongoing conflict, the central government had also relaxed rules around kerosene, allowing its sale for household use through the public distribution system (PDS) and petrol pumps. The Ministry of Petroleum and Natural Gas published a notification on March 29, introducing the 60-day emergency measure to ease pressure on LPG