Reduction in Special Additional Excise Duty on Diesel Exports from 1 October 2026
The Ministry of Finance, Department of Revenue has notified a further change in the Special Additional Excise Duty (SAED) applicable on exports of high-speed diesel from India. Through Notification No. 52/2026-Central Excise dated 30 September 2026, the SAED rate on diesel exports has been revised downward from ₹20 per litre to ₹16 per litre, effective 1 October 2026.
This change has been implemented by amending Notification No. 06/2026-Central Excise dated 26 March 2026, specifically by modifying the rate prescribed against serial number 2 of the Table contained in that principal notification.
The legal basis for this amendment is derived from powers granted under Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002.
Legislative Background and Context
Statutory Authority
The Central Government has invoked:
Section 5Aof the Central Excise Act, 1944 (1 of 1944), andSection 147of the Finance Act, 2002 (20 of 2002)
to introduce changes to the existing excise framework for SAED on petroleum product exports. The Government has recorded its satisfaction that such a revision is required in the public interest.
Linkage with Principal Notification No. 06/2026-Central Excise
Notification No. 06/2026-Central Excise, dated 26 March 2026, is the foundational notification that structured the SAED regime on exports of specified petroleum products including petrol and high-speed diesel.
The present Notification No. 52/2026-Central Excise:
- Does not overhaul the entire framework
- Targets only one specific entry in the Table of the principal notification
- Substitutes the SAED rate in column (4) against serial number 2, which corresponds to high-speed diesel, with the figure “Rs. 16 per litre”
All other entries and conditions under the principal notification remain unaltered unless modified by other notifications.
Immediate Preceding Amendment
Prior to this latest amendment, the SAED rate of ₹20 per litre on diesel exports had been fixed under:
- Notification No. 49/2026-Central Excise dated 16 September 2026, notified via G.S.R. 811(E)
With Notification No. 52/2026-Central Excise, the Government has again revisited the rate within a short period, leading to a further change effective 1 October 2026.
Revised SAED Rate on Diesel Exports: Exact Change
New Rate vs Old Rate
As per Notification No. 52/2026-Central Excise, the rate movement for high-speed diesel exports is as follows:
- **Earlier rate (from 16 September 2026)😗* ₹20 per litre
- **Revised rate (from 1 October 2026)😗* ₹16 per litre
This translates into a reduction of ₹4 per litre, which, in percentage terms, is a 20% decrease from the immediately preceding rate.
Impact on Petrol SAED
The notification is narrowly focused on high-speed diesel. The rate applicable to petrol under the same framework remains as previously notified:
- Petrol continues to attract SAED of ₹0.5 per litre
- There is no modification to the petrol rate through Notification No. 52/2026-Central Excise
Any future changes to petrol would require a separate notification.
Chronology of Diesel SAED Revisions During 2026
The SAED applicable on diesel exports has been subject to multiple recalibrations during 2026. The current reduction to ₹16 per litre needs to be understood within this broader pattern of frequent rate alterations.
Below is a chronological overview of the key notifications impacting diesel export SAED in 2026 (figures and dates as notified):
Notification No. 06/2026-Central Excise (26 March 2026)
- Introduced the principal framework for SAED on exports of specified petroleum products, including high-speed diesel.
April 2026 – Increase to ₹24 per litre
- The Government raised the SAED on diesel exports to ₹24 per litre in April 2026 (by a separate notification referenced in the source background).
Notification No. 19/2026-Central Excise – From 1 May 2026
- Prescribed SAED of ₹23 per litre on diesel exports with effect from 1 May 2026.