Centre grants full customs duty exemption on critical petrochemical products amid Middle East crisis: Check list

As energy supply disruptions due to the ongoing Middle East conflict stretch into a second month, the government has moved to cushion the impact on domestic industries by granting a full customs duty exemption on select critical petrochemical products, providing much-needed short-term relief. The decision, which will be applicable until June 30, will address supply chain challenges and ensure that essential petrochemical inputs remain available for industrial use across the country.“This measure has been taken as a temporary and targeted relief in order to ensure continued availability of critical petrochemical inputs for domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country,” the statement read.The government described the move as a targeted and time-bound measure, aimed towards at easing cost pressures faced by downstream sectors while maintaining stability in supplies. The exemption is expected to support industries that rely heavily on petrochemical feedstock and intermediates.Sectors likely to gain from the decision include plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, along with other manufacturing segments that depend on such inputs for production.The relief is also expected to extend to end consumers, as lower input costs may help reduce the burden on final product prices.Here’s a list of products set to benefit from the exemption:

Earlier, the Centre had moved to cushion both consumers and oil companies from the sharp rise in crude prices, up 62% this month compared to February for Indian refiners, by cutting excise duty, a decision expected to create a revenue shortfall of Rs 1.3 lakh crore for the exchequer.