By reducing input costs, the measure is also likely to support production and help maintain supply continuity.

Govt Waives Customs Duty on Key Petrochemicals Till June 30 Amid West Asia Crisis

The government on Thursday announced a full customs duty exemption on select key petrochemical products until June 30, aiming to ensure stable supplies and provide relief to domestic industries.

According to a statement from the Finance Ministry, the decision has been taken in view of disruptions in global supply chains caused by the ongoing conflict in West Asia. The exemption is intended as a temporary and targeted measure to maintain the availability of essential petrochemical raw materials in the country.

The move is expected to benefit sectors that depend heavily on petrochemical inputs, including plastics, packaging, textiles, pharmaceuticals, chemicals and automobile components. By reducing input costs, the measure is also likely to support production and help maintain supply continuity.

An official stated that the relief would have an estimated fiscal impact of around Rs 1,800 crore on the government exchequer. However, it is expected to aid in stabilising prices and ensuring uninterrupted supply across industries.

Products covered under the exemption include methanol, anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, polybutadiene, styrene butadiene and unsaturated polyester resins.

Concerns over imports of fertilisers, crude oil and natural gas have increased due to disruptions in shipping routes linked to the West Asia conflict. India is a major importer of both petroleum and fertilisers.

The government has also recently reduced excise duty on petrol and diesel and imposed export duties on diesel and aviation turbine fuel.