Special Additional Excise Duty on Petroleum Exports Revised from 16 October 2026
The Ministry of Finance (Department of Revenue) has notified a fresh change in the Special Additional Excise Duty (SAED) structure applicable on exports of petrol and high-speed diesel from India. Vide Notification No. 54/2026-Central Excise, dated 15th October, 2026, the Central Government has amended Notification No. 06/2026-Central Excise, dated 26th March, 2026, revising the duty amounts mentioned against serial numbers 1 and 2 of the Table in that principal notification.
These revised SAED rates are to be applied to export clearances made on or after 16th October, 2026, making it essential for refineries and petroleum exporters to realign their pricing, documentation, and duty computations from that date.
Statutory Authority for the Amendment
The latest amendment has been carried out by the Central Government in exercise of powers conferred under:
Section 5Aof the Central Excise Act, 1944 (1 of 1944); read withSection 147of the **Finance Act, 2002 (20 of 2002)`
The notification explicitly records that the Government is satisfied that these changes are required in the public interest. No further policy rationale or economic justification is detailed in the text of the notification itself.
Background: Earlier Notifications and Rate History
Principal Notification and Earlier Amendments
The SAED framework in question is governed by:
- Notification No. 06/2026-Central Excise, dated 26th March, 2026, published vide G.S.R. 205(E), which originally specified SAED rates for certain petroleum products; and
- Subsequent amendments, notably:
- Notification No. 49/2026-Central Excise, dated 16th September, 2026, which among other things prescribed the earlier SAED rate of ₹0.50 per litre on petrol exports;
- Notification No. 52/2026-Central Excise, dated 30th September, 2026, effective from 1st October, 2026, which prescribed the immediately preceding SAED rate of ₹16 per litre on exports of high-speed diesel.
The new Notification No. 54/2026-Central Excise now further modifies the duty entries against serial numbers 1 and 2 in the Table to Notification No. 06/2026-Central Excise. No other serial numbers or conditions in the principal notification are expressly changed.
Volatility in Diesel Export SAED During 2026
The SAED applicable to exports of high-speed diesel has undergone several revisions in a relatively short span during 2026. Based on the notifications referred to:
- From 16th September, 2026, diesel export SAED was increased to ₹20 per litre;
- From 1st October, 2026, this was brought down to ₹16 per litre vide Notification No. 52/2026-Central Excise;
- From 16th October, 2026, the rate now stands further reduced to ₹8.50 per litre under Notification No. 54/2026-Central Excise.
As a result, the diesel export SAED has decreased by ₹11.50 per litre within roughly one month, moving from ₹20 per litre (from 16th September, 2026) to ₹8.50 per litre (from 16th October, 2026). This works out to a decline of 57.50% in the duty on diesel exports over that short period.
Contrast with Petrol Export SAED Trend
While diesel export SAED has been progressively reduced since 16th September, 2026, petrol export SAED has followed the opposite trajectory in the latest change:
- The SAED on petrol exports was ₹0.50 per litre as per Notification No. 49/2026-Central Excise, dated 16th September, 2026;
- With effect from 16th October, 2026, this has been raised to ₹2.50 per litre, meaning an increase of ₹2 per litre, which equates to a 400% rise in the duty rate.
These shifts demonstrate a differentiated approach being taken for petrol and diesel exports, even though the notification itself does not elaborate on the underlying economic or fiscal objectives.
Core Changes Introduced by Notification No. 54/2026-Central Excise
Text of the Amendment
The operative portion of Notification No. 54/2026-Central Excise, dated 15th October, 2026, makes the following substitutions in the Table to Notification No. 06/2026-Central Excise, dated 26th March, 2026: