Government waives customs duty on key petrochemical imports to steady supplies amid West Asia crisis
The exemption stays till 30 June, giving manufacturers relief as rising input costs begin to pressure margins
Plastics, packaging, textiles, pharma and auto sectors to benefit as they rely heavily on these inputs
The government has removed customs duty on several key petrochemical imports for a limited period, aiming to keep supplies steady as the West Asia crisis begins to affect global trade.
The exemption will remain in place till 30 June. Officials say the move should give manufacturers some breathing room at a time when input costs are already inching up.
Sectors such as plastics, packaging, textiles, pharmaceuticals and auto components are expected to see the immediate benefit, as they depend heavily on these raw materials.
1 April 2026
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"This measure has been taken as a temporary and targeted relief to ensure continued availability of critical petrochemical inputs," said the finance ministry, while adding that it will help contain costs and avoid supply gaps.
Why Govt Removed Import Duty?
The government has extended relief to a wide range of key industrial chemicals used in everyday manufacturing. These include anhydrous ammonia, methanol, toluene, styrene and vinyl chloride monomer.
It has also covered important raw materials such as monoethylene glycol, phenol, acetic acid and purified terephthalic acid, which are used to make fibres, packaging and other common products.
In addition, the list includes widely used plastics like polyethylene, polypropylene, polystyrene and polyvinyl chloride, used across both consumer goods and industrial production.
Engineering plastics like acrylonitrile butadiene styrene and polycarbonates are also part of the exemption, along with speciality chemicals such as epoxy resins, polyurethanes, formaldehyde derivatives and polyols.
Which Sectors Will Get Benefit?
The relief is expected to help manufacturers hold costs for now, instead of passing them on straightaway to buyers.
At the same time, supply pressure is building as the West Asia conflict continues to disrupt key shipping routes. This has slowed the movement of crude oil, fertilisers and natural gas, all vital for India.
Oil prices have jumped sharply since late February, rising nearly 50% after US and Israel strikes on Iran triggered a strong response. The situation has kept markets volatile.
To reduce the impact, the government has already cut excise duty on petrol and diesel by ₹10 per litre. It has also imposed export duties of ₹21.50 per litre on diesel and ₹29.50 per litre on aviation turbine fuel to ensure adequate domestic supply.
Petrol now carries an excise duty of ₹3 per litre, while diesel remains exempt, as the government looks to keep fuel prices from rising further.
