Government Exempts Critical Petrochemical Products from Customs Duty Due to West Asia Crisis
The government has removed customs duties on critical petrochemical products to maintain supply stability and help consumers during the West Asia crisis. This exemption is valid until June 30.
This move will benefit industries reliant on petrochemical materials, such as plastics, textiles, pharmaceuticals, and chemicals. The Finance Ministry stated that the ongoing conflict in West Asia has disrupted global supply chains, leading to this decision.
The goal is to provide temporary relief by ensuring a steady supply of essential petrochemical inputs for domestic industries and reducing costs for downstream sectors. This will also help consumers who rely on these products.
Exempted goods include Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene, and Unsaturated polyester resins.
Shipping disruptions due to the West Asia conflict have caused concerns over imports of fertilizer, crude oil, and natural gas. India is a significant importer of these items.
Global crude prices have surged by nearly 50% since U.S. and Israeli military strikes on Iran began in February. Earlier, the government reduced excise duties on petrol and diesel to shield consumers from rising fuel costs. It also introduced export duties on diesel and Aviation Turbine Fuel (ATF). Currently, excise duty on petrol is ₹3 per litre, and on diesel, it’s zero.