The Centre has decided to extend the full Customs Duty exemption on critical petrochemical products for an additional 15 days, now valid until July 15, 2026. This extension maintains the relief for the same list of petrochemical products as previously notified. The exemption, initially set to end on June 30, 2026, was introduced in response to disruptions in global supply chains due to the conflict in West Asia.
The Ministry of Finance stated that the duty exemption was a temporary measure to ensure ample availability of petrochemicals in the domestic market. Indian petroleum companies were directed to focus on LPG production during this period. The government’s decision to extend the exemption aims to facilitate a smooth transition for industries reliant on imported petrochemical feedstock and intermediates.
The government emphasized its commitment to supporting India’s manufacturing sector and ensuring a steady supply of essential raw materials. The extended exemption is anticipated to benefit various industries such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing sectors dependent on petrochemical inputs. This move is expected to stabilize input costs for manufacturers and maintain competitive prices for consumers.
