Govt exempts critical petrochemical products from customs duty amid West Asia crisis; check full list

Amid the ongoing disruption in the global supply chain triggered by the US-Israel led war against Iran, the government of India on Thursday announced a full Customs Duty exemption on critical petrochemical products till June 30, 2026.

The measure is said to be temporary and will provide relief in order to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country.

The exemption is expected to benefit sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments, and to consumers of final products.

In a statement, the finance ministry noted a total of 40 goods on which the customs duty have been exempted, which include Methanol, Anhydrous ammonia, Toluene , Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins.

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.

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. Excise duty on petrol has been slashed to Rs 3 a litre.