New Delhi: The Centre on Tuesday extended the full customs duty exemption on imports of critical petrochemical products by 15 days, pushing the relief period to July 15, 2026.
The exemption, which was earlier set to expire on June 30, 2026, will continue to apply to the same list of notified petrochemical items.
According to the Ministry of Finance, the measure was initially introduced as a temporary response to disruptions in global supply chains caused by conflict in West Asia, which had impacted the availability of essential petrochemical inputs. The step also supported domestic refiners who were directed to prioritise production of Liquefied Petroleum Gas (LPG) during the period.
The government said the extension is aimed at ensuring a smooth transition as global supply conditions gradually stabilise, without causing disruptions for industries dependent on imported petrochemical feedstock and intermediates.
While acknowledging that conditions are returning to normal, officials said the short extension would help avoid supply shocks for downstream industries.
The exemption is expected to benefit sectors such as plastics, packaging, textiles, pharmaceuticals, chemicals, and automotive components, all of which rely heavily on petrochemical inputs. It is also likely to help stabilise input costs and maintain competitiveness in manufacturing.
The Finance Ministry said the list of eligible products remains unchanged and reaffirmed the government’s commitment to ensuring uninterrupted availability of essential raw materials for industry.
Officials added that the policy is intended to support both industrial stability and consumer price control by preventing sudden increases in production costs.
With inputs from IANS