The government has announced a full Customs Duty exemption on critical petrochemical products as a temporary relief measure in response to ongoing disruptions in global supply chains due to the conflict in West Asia.
The decision was announced by the Ministry of Finance on Thursday, 2 April, with the exemption set to remain in effect till 30 June 2026.
The government stated that the move aims to ensure the continued availability of essential petrochemical inputs for domestic industries, while also helping to reduce cost pressures and maintain supply stability across sectors.
The exemption is expected to benefit a wide range of industries that rely on petrochemical feedstock and intermediates, including plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments.
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In addition to supporting industrial production, the measure is also expected to provide relief to consumers by moderating the cost of final products dependent on these inputs.
The list of exempted items includes key raw materials and intermediates such as anhydrous ammonia, methanol, toluene, styrene, monoethylene glycol (MEG), phenol, acetic acid, purified terephthalic acid (PTA), and various polymers including polyethylene, polypropylene, PVC, polystyrene and ABS.
Several specialised chemicals and industrial materials such as epoxy resins, polycarbonates, polyurethanes, PET chips, formaldehyde-based resins and synthetic rubbers have also been included under the exemption list.
The move is expected to cushion domestic industry from external shocks while ensuring uninterrupted production cycles in critical sectors.
The decision comes at a time when global supply chains are facing uncertainty amid ongoing conflict in West Asia, impacting the availability and pricing of petrochemical inputs worldwide.
