The Ministry of Finance, Department of Revenue, has reduced the Special Additional Excise Duty (SAED), commonly referred to as the windfall tax, on exports of diesel and Aviation Turbine Fuel (ATF) with effect from October 1, 2026.
The revised rates have been notified through Notification No. 52/2026-Central Excise and Notification No. 53/2026-Central Excise, both dated September 30, 2026.
Diesel export levy reduced to ₹16 per litre
Vide Notification No. 52/2026-Central Excise dated September 30, 2026 [G.S.R. 854(E)], the Central Government has amended Notification No. 06/2026-Central Excise dated March 26, 2026 and substituted the rate applicable against serial number 2 with ₹16 per litre.
Accordingly, the SAED on exports of diesel stands reduced from the prevailing ₹20 per litre to ₹16 per litre, with effect from October 1, 2026. The immediately preceding ₹20 per litre rate had been prescribed through Notification No. 49/2026-Central Excise dated September 16, 2026.
ATF export levy cut to ₹10.5 per litre
Similarly, vide Notification No. 53/2026-Central Excise dated September 30, 2026 [G.S.R. 855(E)], the Government has amended Notification No. 08/2026-Central Excise dated March 26, 2026 and substituted the applicable rate with ₹10.5 per litre.
The SAED on exports of ATF has therefore been reduced from ₹15 per litre to ₹10.5 per litre, effective October 1, 2026. The ₹15 per litre rate had been introduced through Notification No. 50/2026-Central Excise dated September 16, 2026.
Petrol export levy remains unchanged
The September 30 notifications revise only the rates applicable to diesel and ATF. The SAED applicable to petrol exports therefore continues at the existing ₹0.5 per litre, which had been prescribed with effect from September 16, 2026 under Notification No. 49/2026-Central Excise.
Latest revision follows September 16 rate cut
The Government had last revised these export levies on September 16, 2026, when the SAED on diesel exports was reduced to ₹20 per litre and that on ATF exports to ₹15 per litre. The latest notifications provide a further reduction from October 1, 2026.
Domestic petrol and diesel excise rates unaffected
The September 30 notifications deal with the relevant SAED framework governing specified petroleum products and do not amend the excise duty rates applicable to petrol and diesel cleared for domestic consumption. Accordingly, the present revision should be described as a change in the export-related SAED rates rather than a reduction in domestic fuel taxes.
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/Central-Excise-Notifications.pdf
