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

Govt extends its full customs duty exemption on critical petrochemical imports by 15 days to 15 July as West Asia disruptions ease

PSU Watch Bureau

New Delhi: The government on Tuesday extended its full customs duty exemption on imports of critical petrochemical products by a further 15 days, till 15 July 2026, citing a gradual easing of the situation in West Asia, the Ministry of Finance said in a statement.

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The exemption, a temporary and targeted relief first granted in early April, had been due to lapse on June 30. The government said the extension was meant to give affected sectors time to adjust.

"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 ministry said, adding that "the list of products covered remains the same as notified earlier."

Relief was tied to ramp-up of LPG production

The exemption was first introduced against the backdrop of the conflict in West Asia and the resulting disruptions to global supply chains.

"The Government had earlier provided a full Customs Duty exemption on imports of critical petrochemical products till 30th June 2026, as a temporary and targeted relief in view of the conflict in West Asia and the consequent disruptions in global supply chains," the ministry said.

It said the relief had been necessitated by a shift in domestic refining priorities during the crisis. "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 said.

Sectors set to benefit

The ministry said the relief would continue to support domestic industry. "The Government remains committed to supporting India's manufacturing sector," it said.

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The exemption is expected to benefit a wide range of sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments, and to "also provide relief to consumers of final products," the ministry said.

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