New Delhi, 02 April (H.S.):
In a significant move amid ongoing conflict in West Asia and disruptions in global supply chains, the Central Government has granted full customs duty exemption on imports of critical petrochemical products. This exemption will remain in effect until June 30, aiming to provide domestic industries with affordable raw materials and stabilize prices of end products.
According to the Finance Ministry, the government introduced this exemption to ensure supply stability and offer relief to consumers on final products. It will benefit industries reliant on petrochemical feedstocks and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing sectors. Described as a temporary and targeted relief measure, the step seeks to maintain the availability of essential petrochemical supplies for domestic industries, reduce cost pressures on downstream sectors, and secure supply stability across the country—ultimately providing relief to consumers of end products.
The Finance Ministry specified that the duty exemption covers methanol, anhydrous ammonia, toluene, styrene, dichloromethane (methylene chloride), vinyl chloride monomer, polybutadiene, styrene butadiene, and unsaturated polyester resin. Last week, to shield consumers from rising global crude oil prices, the government reduced excise duty on petrol and diesel by up to ₹10 per litre.
Additionally, it imposed an export duty of ₹21.50 per litre on diesel and ₹29.50 per litre on aviation turbine fuel (ATF). Currently, excise duty stands at ₹3 per litre on petrol and zero on diesel.
The West Asia crisis has heightened government concerns over disruptions in shipping routes, impacting imports of fertilizers, crude oil, and natural gas—commodities for which India is a major importer. Following military strikes by the US and Israel on Iran on February 28 and Tehran's extensive retaliatory actions, global crude oil prices have surged by nearly 50 percent.
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Hindusthan Samachar / Jun Sarkar
