Delhi: The Central Government has extended the full customs duty exemption on selected critical petrochemical imports until 15 July 2026, providing continued support to industries affected by supply chain disruptions linked to the ongoing conflict in West Asia.
In a move aimed at ensuring uninterrupted availability of essential industrial raw materials, the Government has prolonged the existing full customs duty exemption on specified petrochemical products for an additional 15 days, extending the relief until 15 July 2026.
The exemption was initially scheduled to end on 30 June 2026 and was introduced as a temporary measure to address supply chain challenges arising from the geopolitical situation in West Asia. According to the Ministry of Finance, the extension is intended to facilitate a smooth transition as market conditions gradually stabilize.
The Government said the exemption continues to support domestic availability of critical petrochemical inputs at a time when Indian petroleum companies have been prioritising LPG production. Maintaining adequate supplies of these products remains important for industries that rely on petrochemical feedstock for manufacturing operations.
Officials clarified that the list of products covered under the exemption remains unchanged from the earlier notification. The decision is designed to minimise disruptions across manufacturing sectors while allowing businesses additional time to adjust to evolving supply conditions.
Several industries are expected to benefit from the continued relief, including plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components. These sectors depend heavily on imported petrochemical intermediates for production, and the temporary duty exemption is expected to help ease input costs and maintain supply continuity.
The Government also noted that the measure could indirectly benefit consumers by supporting the availability of finished products manufactured using these petrochemical inputs.
The extension reflects the Government’s ongoing approach of balancing immediate industry requirements with evolving global market conditions. While the supply situation has shown signs of improvement, authorities have opted for a phased withdrawal of emergency support measures to avoid disruptions for manufacturers dependent on imported petrochemical feedstock.
The customs duty exemption will now remain in force until 15 July 2026, unless revised through a subsequent government notification.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB), Ministry of Finance, Government of India
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