Govt extends customs duty exemption on critical petrochemical imports till July 15

New Delhi, June 30 (IANS) The Centre on Tuesday decided to extend the full Customs Duty exemption on the import of critical petrochemical products by another 15 days, allowing the relief to continue until July 15, 2026.

The exemption, which was earlier scheduled to expire on 30 June 2026, will remain applicable to the same list of petrochemical products notified previously.

The duty exemption was introduced as a temporary and targeted measure in response to the conflict in West Asia, which disrupted global supply chains and affected the availability of key petrochemical products.

“The exemption was provided to ensure sufficient availability of petrochemicals in the domestic market as Indian petroleum companies had been asked to concentrate on the production of LPG during this period,” the Ministry of Finance said.

The move was aimed at ensuring adequate domestic supplies at a time when Indian petroleum companies had been asked to prioritise the production of Liquefied Petroleum Gas (LPG).

According to the government, the situation is now gradually returning to normal. However, the decision to extend the exemption has been taken to ensure a smooth and non-disruptive transition for industries dependent on imported petrochemical feedstock and intermediates.

The government said it remains committed to supporting India’s manufacturing sector and ensuring uninterrupted availability of essential raw materials. The continued exemption is expected to benefit a broad range of industries, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and several other manufacturing segments that rely on petrochemical inputs.

“As the situation is gradually normalising, to ensure a smooth and non-disruptive transition for the affected sectors, it has been decided to extend the said exemption by a further period of 15 days, that is, till 15th July 2026.The list of products covered remains the same as notified earlier,” the ministry stated.

The extension is also expected to help stabilise input costs for manufacturers and provide relief to consumers by supporting the continued availability of finished products at competitive prices.

–IANS

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