Centre waives customs duty on key petrochemical products till June 30 amid West Asia crisis

The Centre has announced a full customs duty exemption on a range of key petrochemical products till June 30, in a bid to cushion domestic industries from supply disruptions caused by the ongoing West Asia crisis.

The decision, notified by the Ministry of Finance, is aimed at ensuring the continued availability of critical industrial inputs, reducing cost pressures on downstream sectors, and maintaining supply stability in the country.

The exemption covers around 40 petrochemical products, including essential feedstocks and polymers such as methanol, toluene, styrene, monoethylene glycol (MEG), phenol, acetic acid, and purified terephthalic acid (PTA), along with plastics like polyethylene, polypropylene, polyvinyl chloride (PVC), and polystyrene.

The move comes as global supply chains face disruptions due to the ongoing conflict in West Asia, particularly affecting shipping routes and increasing freight and input costs.

Officials described the measure as a “temporary and targeted relief”, noting that it will benefit sectors heavily dependent on petrochemical inputs, including plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive manufacturing.

Industry experts say the exemption is likely to ease cost pressures across manufacturing value chains and provide indirect relief to consumers by stabilising prices of finished goods.

The government invoked provisions under the Customs Act to implement the exemption in public interest, reflecting efforts to shield the domestic economy from external shocks arising out of geopolitical tensions.

The decision is part of a broader strategy to manage the economic fallout of the West Asia crisis, which has disrupted energy and petrochemical supplies globally and impacted input availability for Indian industries.