RIC Exemption Extended to PSU Exports of Petrol and Diesel to Mauritius and Maldives

The Central Government has broadened the scope of exemption from Road and Infrastructure Cess (RIC) on exports of petrol and diesel made by Public Sector Oil Companies (PSUs). Through Notification No. 34/2026-Central Excise dated 30 June 2026, the list of destination countries qualifying for this relief has been enlarged to cover exports to Maldives and Mauritius, in addition to the existing eligible neighbouring countries.

This policy shift is aimed at facilitating smoother export operations by Indian PSUs, strengthening regional energy cooperation, and ensuring competitive pricing of fuel supplied to these partner countries.

Statutory Provisions Invoked

The Government has exercised its powers under:

  • Section 5A of the Central Excise Act, 1944 (1 of 1944)
  • Section 112 of the Finance Act, 2018 (13 of 2018)

These provisions empower the Central Government to grant exemptions from excise duties (including cesses such as RIC) when it considers such measures to be in the public interest.

Note: The exemption pertains specifically to Road and Infrastructure Cess (RIC) and not to all possible duties or taxes on petrol and diesel.

Relevant Notifications

  1. Principal Notification

    • Notification No. 11/2026-Central Excise
    • Dated: 26 March 2026
    • Published via G.S.R. 210(E) in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)
    • Originally granted RIC exemption on certain exports of petrol and diesel by Public Sector Oil Companies to specified neighbouring countries.

  2. Earlier Amendment

    • Notification No. 21/2026-Central Excise
    • Dated: 30 April 2026
    • Published via G.S.R. 326(E)
    • This notification had previously altered certain aspects of the principal notification.

  3. Current Amendment (Key Focus)

    • Notification No. 34/2026-Central Excise
    • Dated: 30 June 2026
    • Issued by the Ministry of Finance (Department of Revenue)
    • Carrying reference G.S.R. 535(E)
    • Introduces further amendments to Notification No. 11/2026-Central Excise.

Core Change Introduced by Notification No. 34/2026-Central Excise

Modification in Paragraph 2, Clause (b)

The crucial change made by the latest notification concerns paragraph 2, clause (b) of the principal notification. Earlier, this clause covered exports of petrol and diesel by Public Sector Oil Companies to four specific countries, namely:

  • Nepal
  • Bhutan
  • Bangladesh
  • Sri Lanka

The new notification provides that, in this clause, the existing wording:

“Nepal, Bhutan, Bangladesh and Sri Lanka”

shall be replaced by:

“Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives and Mauritius”.

In effect, the list of eligible destination countries has now been expanded from four to six.

Practical Result of the Amendment

Following the substitution: