Government Waives Customs Duty on Petrochemical Imports Amid West Asia Crisis

The government has temporarily exempted customs duty on critical petrochemical imports to stabilize supply and relieve consumers amid the West Asia crisis. This exemption is expected to benefit sectors reliant on petrochemical feedstock, costing the exchequer Rs 1,800 crore, and aims to mitigate supply chain disruptions caused by ongoing conflicts.

The government announced on Thursday that it will temporarily exempt customs duty on the import of crucial petrochemical products until June 30, aiming to stabilize supply and provide consumer relief during the ongoing crisis in West Asia.

The duty exemption, costing Rs 1,800 crore, is anticipated to benefit industries reliant on petrochemical feedstocks, including plastics, textiles, pharmaceuticals, and automotive manufacturing. This move is a response to disruptions in global supply chains due to regional conflicts.

India, a major importer of fertilizers and petroleum, faces increased costs as global crude prices rise. To alleviate consumer impact, the government also reduced excise duties on petrol and diesel while imposing export duties on certain fuels.

(With inputs from agencies.)