The exemption was provided to ensure sufficient availability of petrochemicals in the domestic market
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William_Potter
The Finance Ministry on Tuesday extended complete waiver of import duty on certain critical petrochemical products by 15 days to July 15. The waiver was ending on Tuesday.According to a Ministry statement, 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. “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 15 days, that is, till July 15,” it said while adding that the list of products covered remains the same as notified earlier.The goods on which the customs duty have been exempted include Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins.“The government remains committed to supporting India’s manufacturing sector. As before, 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. This will also provide relief to consumers of final products,” the statement said.According to Saurabh Agarwal, Tax Partner at EY India, the extension shows that the Government is taking well thought of steps by way of a transition-focused move rather than an abrupt withdrawal. This will ensure that the feedstock keeps flowing as domestic refiners were continuing to prioritise LPG production as the situation normalises. “The sectors which are likely to be immediate beneficiary includes plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components — with the cost relief ultimately flowing through to consumers of final products,” he said while adding that For businesses, the key takeaway is to treat 15 July as a clear planning horizon — revisiting import contracts, landed costs and inventory positions ahead of the reversion to normal duty.On April 2, the Ministry announced full customs duty exemption on critical petrochemical products till June 30 to mitigate the woes due to West Asia crisis. This measure was as taken a temporary and targeted relief to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors and safeguard supply stability in the country.Published on June 30, 2026
