NEW DELHI, Apr 2: The government on Thursday exempted imports of critical petrochemical products from customs duty till June 30 to ensure supply stability and ease pressure on consumers amid the ongoing West Asia crisis.
The finance ministry said the decision was taken in view of disruptions in global supply chains caused by the conflict, aiming to maintain availability of key inputs for domestic industries and reduce cost pressures on downstream sectors.
“This measure has been introduced as a temporary and targeted relief to ensure uninterrupted supply of essential petrochemical inputs, support manufacturing, and stabilise prices,” the ministry said, adding that it will also benefit consumers of final products.
The exemption is expected to support sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing industries.
Products covered under the exemption include Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins.
The move comes amid rising concerns over disruptions in shipping routes due to the West Asia conflict, impacting imports of fertilisers, crude oil and natural gas. India relies heavily on imports for both fertiliser and petroleum needs.
Global crude prices have surged by nearly 50 per cent since late February following military strikes and subsequent escalation in the region, adding to inflationary pressures.
Last week, the government also reduced excise duty on petrol and diesel by Rs 10 per litre to shield consumers from rising fuel costs. It additionally imposed export duties of Rs 21.50 per litre on diesel and Rs 29.50 per litre on Aviation Turbine Fuel (ATF). Excise duty on petrol now stands at Rs 3 per litre, while diesel currently carries no excise duty. (Agencies)
