In view of the ongoing conflict in West Asia and the resulting disruptions in the global supply chain, the Government of India has decided to remove complete custom duty on essential petrochemical products by June 30, 2026. The government has removed duty on some products. This step will ensure that the country’s industries get the necessary raw materials continuously, the costs remain low and the supply remains intact. For this, a temporary relief has been raised.
This exemption is expected to benefit many sectors that depend on petrochemical raw materials, such as plastics, packaging, textiles, pharmaceuticals, chemicals, auto parts and other manufacturing sectors. This will ultimately provide relief to the customers also.
There is a discount on these
The government has removed custom duty from all the chemicals given below.
- anhydrous ammonia
- Toluene
- Styrene
- Dichloromethane/Methylene Chloride
- vinyl chloride monomer
- Methanol (Methyl Alcohol)
- isopropyl alcohol
- Monoethylene Glycol (MEG)
- Phenol
- Acetic acid
- vinyl acetate monomer
- Purified Terephthalic Acid (PTA)
- ethylene diamine
- Diethanolamine and Monoethanolamine
- toluene di-isocyanate
- ammonium nitrate
- Linear Alkyl Benzene
- Polymers of ethylene (including ethylene-vinyl acetate)
- polypropylene
- polystyrene
- Styrene-acrylonitrile (SAN)
- Acrylonitrile-Butadiene-Styrene (ABS)
- Polyvinyl Chloride (PVC)
- polytetrafluoroethylene
- polyvinyl acetate
- polyvinyl alcohol
- poly(methyl methacrylate)
- Polyoxymethylene (POM – Acetal)
- polyols
- Polyether Ether Ketone (PEEK)
- epoxy resins
- polycarbonates
- alkyd resins
- Poly Ethylene Terephthalate (PET) Chips
- unsaturated polyester resins
- Poly Butylene Terephthalate
- formaldehyde
- urea formaldehyde
- melamine formaldehyde
- phenol formaldehyde
- polyurethane
- Polyphenylene Sulphide (PPS)
- Poly Butadiene, Styrene Butadiene
Impact on pharma sector
From medicines and paints to clothing and toys, many industries that use petrochemicals are bearing the brunt of the Iran conflict, as refinery companies have passed the burden of rising crude oil and gas prices onto these industries. There are some small industries related to petrochemicals which require more people and which are not able to fix their prices easily, such as the textile industry, where the impact on employment is clearly visible. These industries are worried about long-term pressure on profits, because unless the world supply of petrochemicals improves, there is little hope of reducing the prices of raw materials and this situation may improve only several months after the end of the fighting in the Gulf region.
The effect of petrochemical inflation is not visible immediately like that of fuel, but becomes visible after some time. The effect of expensive packaging is visible on the new stock, which comes to the market with some delay. Petrochemicals are used almost everywhere in everyday things; Therefore, the increase in prices shows its effect gradually. Its impact moves through industries that require more people, and has the greatest impact on low-income people.
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