Reduction in Special Additional Excise Duty on Petrol and Diesel Exports via Notification No. 49/2026-Central Excise

The Ministry of Finance, Department of Revenue, has notified a downward revision of the Special Additional Excise Duty (SAED) on exports of petrol and high-speed diesel with effect from 16 September 2026. This change has been implemented through Notification No. 49/2026-Central Excise dated 16 September 2026, which further amends Notification No. 06/2026-Central Excise dated 26 March 2026.

This update is significant for refineries and other exporters of petrol and high-speed diesel, as it directly affects their export duty incidence and pricing decisions for overseas markets.

Legal Basis for the SAED Revision

The Central Government has exercised its powers under:

• Section 5A of the Central Excise Act, 1944 (1 of 1944); and
• Section 147 of the Finance Act, 2002 (20 of 2002)

to modify the effective SAED rates applicable to exports of specified petroleum products.

The notification explicitly records that the Central Government is acting in public interest while granting this relief by way of a reduced effective rate of SAED.

Background: Principal Notification on SAED for Exports

The SAED on exports of petrol and high-speed diesel is governed by Notification No. 06/2026-Central Excise dated 26 March 2026, which prescribes effective rates of SAED on export of certain petroleum products.

Broadly, the principal notification operates as follows:

• SAED is leviable under Section 147 read with the Eighth Schedule to the Finance Act, 2002.
• The principal notification exempts specified petroleum products from so much of the SAED as exceeds the amount computed at the effective rate set out in its Table.
• As a result, exporters of petrol and high-speed diesel effectively pay SAED at the concessional rates prescribed in that Table, instead of the full statutory rate.

Subsequently, Notification No. 46/2026-Central Excise dated 1 September 2026 revised the SAED rate for petrol exports to ₹1.5 per litre, while the diesel rate remained unchanged at ₹24 per litre as per the then prevailing position.

Latest Amendment: Notification No. 49/2026-Central Excise

Scope of the Notification

Notification No. 49/2026-Central Excise dated 16 September 2026 makes a further amendment to Notification No. 06/2026-Central Excise by specifically altering the entries in the Table for:

• Serial number 1 – relating to motor spirit (commonly known as petrol); and
• Serial number 2 – relating to high-speed diesel oil.

The amendment is effected by substituting the existing entries in column (4) of the Table against these serial numbers with new reduced duty rates.

Revised SAED Rates for Exports

The revised effective SAED rates applicable on exports of petrol and high-speed diesel are as follows:

Key points:

• The petrol export SAED rate has been brought down from ₹1.5 per litre (as earlier notified by Notification No. 46/2026-Central Excise) to ₹0.5 per litre.