02 April,2026 01:32 PM IST | New Delhi | mid-day online correspondent
Pic/AFP
The Central government has announced a temporary exemption on customs duty for select petrochemical products in a bid to stabilise domestic supply and shield industries from rising global disruptions triggered by the ongoing crisis in West Asia. The relief measure, which will remain in effect until June 30, is aimed at easing cost pressures across multiple sectors dependent on petrochemical inputs, reported news agency PTI.
In an official statement, the Ministry of Finance said the decision was taken in response to disruptions in global supply chains caused by escalating tensions in West Asia. The exemption is intended to ensure uninterrupted availability of critical petrochemical feedstock required for industrial production, reported PTI.
The government described the move as a "temporary and targeted relief" designed to maintain supply stability, reduce input costs for downstream industries and prevent inflationary pressure on finished goods.
The exemption is expected to provide significant relief to industries that rely heavily on petrochemical intermediates. Key sectors set to benefit include plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments, reported PTI.
By lowering the cost of raw materials, the government aims to support industrial output and minimise the cascading impact of global price volatility on domestic markets.
The customs duty waiver applies to several critical petrochemical products, including Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Polybutadiene, Styrene-butadiene and Unsaturated polyester resins, reported PTI.
These inputs are widely used across industrial applications, making their availability crucial for maintaining production cycles and preventing supply bottlenecks.
The move comes amid growing concerns over disruptions in shipping routes and supply chains due to the ongoing conflict in West Asia. India, being a major importer of fertilisers and petroleum products, is particularly vulnerable to such disruptions, reported PTI.
Global crude oil prices have surged sharply following military escalations involving the United States and Israel against Iran, with retaliatory actions further intensifying the crisis. Prices have reportedly risen by nearly 50 per cent since late February, adding pressure on energy-importing economies like India.
The government has already taken steps to mitigate the impact of rising fuel prices on consumers. Last week, it reduced excise duty on petrol and diesel by Rs 10 per litre. Additionally, export duties were imposed on diesel and aviation turbine fuel to manage domestic availability, reported PTI.
Currently, excise duty on petrol stands at Rs 3 per litre, while diesel has been brought down to zero, reflecting the government's effort to balance fiscal considerations with consumer relief.
Officials said the latest customs duty exemption is part of a broader strategy to manage inflationary risks and ensure that industries continue to function without disruption. By maintaining a steady supply of essential petrochemical inputs, the government aims to protect both manufacturers and consumers from the ripple effects of global geopolitical tensions, reported PTI.
(With inputs from PTI)
