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Centre Grants Customs Duty Exemption on Petrochemicals

  • 03 Apr 2026

On 2nd April 2026, the Government of India announced full customs duty exemption on critical petrochemical products till June 30, 2026, to ensure supply stability amid disruptions caused by the West Asia conflict.

Key Points

  • Objective:
    • Ensure availability of key petrochemical inputs.
    • Reduce cost pressures on industries.
    • Maintain supply chain stability.
  • Reason for Move:
    • Ongoing geopolitical tensions in West Asia.
    • Disruptions in global supply chains and maritime trade.
  • Sectors Benefited:
    • Plastics and packaging.
    • Textiles and chemicals.
    • Pharmaceuticals.
    • Automotive components and manufacturing.
  • Key Products Covered:
    • Anhydrous ammonia, methanol, toluene, styrene.
    • Monoethylene glycol (MEG), phenol, acetic acid.
    • Vinyl chloride monomer, PTA, polymers, resins, formaldehyde.
  • Consumer Impact:
    • Likely to reduce input costs.
    • Provide indirect relief in prices of finished goods.
  • Related Government Measures:
    • Restoration of RoDTEP (Remission of Duties and Taxes on Exported Products) Scheme benefits from March 23, 2026.
    • Supports exporters facing high freight costs and war-related risks.
  • Energy Security Status:
    • Adequate domestic stock of crude oil, LPG, LNG, and petroleum products.
    • Diversified sourcing strategy in place.