India’s Finance Ministry raised the special additional excise duty on petrol exports to INR 4 per litre from INR 1.5 per litre effective 1 July 2026, while reducing duties on diesel and ATF, through Notification Nos. 30/2026 and 31/2026-Central Excise issued on 15 June 2026.
India’s Finance Ministry recalibrated its windfall gains tax on fuel exports through a revised notification on 1 July 2026, signalling a shift in its fiscal approach to petroleum product shipments.
The adjustments, which took effect on 1 July 2026, reflect the government’s ongoing efforts to calibrate export incentives against domestic supply concerns.
Petrol levy climbs, diesel and ATF fall
The special additional excise duty (SAED) on petrol exports rose sharply to INR 4 per litre, more than doubling from the previous rate of INR 1.5 per litre.
By contrast, the government eased the burden on diesel exporters, reducing the duty to INR 8.5 per litre from INR 14 per litre.
Aviation turbine fuel (ATF) exports also saw relief, with the levy cut to INR 7.5 per litre from INR 12.5 per litre.
Expanded regional exemptions
The ministry extended duty exemptions to two additional countries. Public sector oil companies exporting to Mauritius and the Maldives now join existing exemption beneficiaries—Nepal, Bhutan, Bangladesh and Sri Lanka—creating a preferential trade corridor for South Asian and Indian Ocean region markets.
Export levies on diesel and ATF were first introduced on 27 March 2026 during heightened regional tensions. Petrol export duties followed on 16 May 2026. Domestic excise duty rates remain unchanged.
Earlier, India had increased the Special Additional Excise Duty (SAED) on exports of diesel and aviation turbine fuel (ATF), with the revised rates taking effect from 16 June 2026.
