In a significant decision aimed at calibrating the windfall tax regime in line with prevailing international crude oil prices and market dynamics, the Central Government has revised the Special Additional Excise Duty (SAED) applicable on the export of petrol, High Speed Diesel (HSD) and Aviation Turbine Fuel (ATF). The revised rates shall come into force with effect from 16th May, 2026.
[I] Vide Notification No. 22/2026-Central Excise dated 15th May, 2026 [G.S.R. 367(E)], issued in exercise of powers conferred by Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002, the Government has further amended the principal Notification No. 06/2026-Central Excise dated 26th March, 2026. The amendment has the following effect on the Table appended to the principal notification:
- Against Serial No. 1, in Column (4), the entry now stands substituted with “Rs. 3 per litre”, thereby imposing a fresh SAED on export of Petrol.
- Against Serial No. 2, in Column (4), the entry now stands substituted with “Rs. 16.5 per litre”, thereby reducing the SAED on export of High Speed Diesel (HSD) from the earlier rate of Rs. 23 per litre.
[II] Simultaneously, vide Notification No. 23/2026-Central Excise dated 15th May, 2026 [G.S.R. 368(E)], the Central Government has amended the principal Notification No. 08/2026-Central Excise dated 26th March, 2026. In the Table thereto, against Serial No. 1, in Column (4), the entry has been substituted with “Rs. 16 per litre”, thereby reducing the SAED leviable on export of Aviation Turbine Fuel (ATF) from the earlier rate of Rs. 29.5 per litre.
A summary of the revised rates of Special Additional Excise Duty (SAED) on export of petroleum products is tabulated hereunder:
| Sl. No. | Product (Export) | Earlier Rate | Revised Rate (w.e.f. 16.05.2026) |
| 1 | Petrol (Motor Spirit) | Nil | Rs. 3 per litre |
| 2 | High Speed Diesel (HSD) | Rs. 23 per litre | Rs. 16.5 per litre |
| 3 | Aviation Turbine Fuel (ATF) | Rs. 29.5 per litre | Rs. 16 per litre |
The aforesaid amendments have been carried out by the Central Government in exercise of the powers conferred under Section 5A of the Central Excise Act, 1944 (1 of 1944) read with Section 147 of the Finance Act, 2002 (20 of 2002), being satisfied that it is necessary in the public interest so to do.
It may be recalled that the principal notifications, viz., Notification No. 06/2026-Central Excise [G.S.R. 205(E)] and Notification No. 08/2026-Central Excise [G.S.R. 207(E)], both dated 26th March, 2026, were last amended by Notification Nos. 19/2026-Central Excise [G.S.R. 324(E)] and 20/2026-Central Excise [G.S.R. 325(E)] respectively, dated 30th April, 2026. The present revision is in pursuance of the fortnightly review of windfall tax rates undertaken by the Government, taking into account the movement in international crude oil and product prices.
The revised rates of Special Additional Excise Duty shall be applicable on export of the said petroleum products with effect from 16th May, 2026. All concerned trade and industry stakeholders are advised to take note of the revised rates for compliance.
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/05/Central-Excise-Notifications-15.05.2026.pdf
