The central government has extended the customs duty exemption on critical petrochemicals until July 15. This move, a response to the West Asia conflict, aims to aid manufacturing. Separately, emergency curbs on petrol and diesel sales were lifted.
The central government on Tuesday extended full customs duty exemption on critical petrochemical products, given in view of the conflict in West Asia, till July 15.
Customs Duty Exemption on Petrochemicals Extended
A Finance Ministry release said that the Government had earlier provided a full Customs Duty exemption on imports of critical petrochemical products till June 30, as a temporary and targeted relief in view of the conflict in West Asia and the consequent disruptions in global supply chains. The exemption was provided to ensure sufficient availability of petrochemicals in the domestic market as Indian petroleum companies had been asked to concentrate on the production of LPG during this period.
"As the situation is gradually normalizing, to ensure a smooth and non-disruptive transition for the affected sectors, it has been decided to extend the said exemption by a further period of 15 days, that is, till July 15, 2026.The list of products covered remains the same as notified earlier," the release said.
It said that the government remains committed to supporting India's manufacturing sector.
"As before, the exemption is expected to benefit a wide range of sectors dependent on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments. This will also provide relief to consumers of final products," the release said.
Emergency Curbs on Petrol, Diesel Sales Withdrawn
Earlier on Monday, the Ministry of Petroleum and Natural Gas rolled back emergency curbs on petrol and diesel sales, signalling that domestic fuel supply has stabilised after weeks of disruption linked to the West Asia crisis.
"The Ministry of Petroleum and Natural Gas has withdrawn the temporary regulatory measures governing the sale and distribution of Motor Spirit (MS) and High Speed Diesel (HSD) through retail outlets of Public Sector Oil Marketing Companies with effect from 1st July, 2026," the Ministry of Petroleum and Natural Gas said in a release.
It said that during the period of disruptions arising from the West Asia crisis, the Government continued to shield retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of petrol and diesel. This led to a significant price difference between retail fuel prices and those applicable to bulk consumers. Consequently, certain industrial, commercial and institutional consumers began procuring fuel through retail outlets, "leading to instances of diversion, hoarding and black marketing, which affected the equitable distribution of fuel".
To address this situation, the temporary regulatory measures, introduced on June 12, 2026, prescribed a temporary limit of 200 litres of High Speed Diesel (HSD) per customer/vehicle per day at retail outlets and required industrial, institutional and commercial consumers to procure fuel through designated consumer pumps instead of retail outlets.
The measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers. Their withdrawal reflects the improvement in the supply situation and the restoration of normal supply arrangements, the release said.
With global crude volatility easing and domestic logistics stabilised, bulk buyers can resume normal procurement channels, while retail outlets return to unrestricted sales. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)