The Central Government has increased the Special Additional Excise Duty (SAED) on exports of diesel and Aviation Turbine Fuel (ATF), revising the rates upward with effect from June 16, 2026. 

The notification increases/revises:

The old rates were fixed by the previous amendments dated 30 May 2026: Notification No. 24/2026 fixed petrol export SAED at ₹1.5/litre and diesel export SAED at ₹13.5/litre, while Notification No. 25/2026 fixed ATF export SAED at ₹9.5/litre. 

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Diesel Export Duty Increased to ₹14 Per Litre

Through Notification No. 30/2026-Central Excise, the Government has amended Notification No. 06/2026-Central Excise dated March 26, 2026. The amendment substitutes the existing entry in the notification table and prescribes a revised SAED rate of ₹14 per litre for the relevant petroleum product category.

The move represents an increase from the earlier rate of ₹13.5 per litre, which had been fixed through Notification No. 24/2026-Central Excise dated May 30, 2026. Consequently, exporters of diesel will now be required to pay an additional ₹0.50 per litre in export duty from June 16 onwards.

ATF Export Duty Sees Sharp Increase

In a separate notification, the Government has amended Notification No. 08/2026-Central Excise dated March 26, 2026. The revised notification substitutes the earlier duty rate with a new SAED of ₹12.5 per litre.

This marks a significant increase from the previous rate of ₹9.5 per litre, which had been prescribed through Notification No. 25/2026-Central Excise dated May 30, 2026. The increase of ₹3 per litre is substantially higher than the revision made in respect of diesel exports and is likely to attract close attention from refinery operators and aviation fuel exporters.

Effective From June 16

Both notifications expressly provide that the revised rates will come into force on June 16, 2026. The amendments have been issued under Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002, with the Government recording its satisfaction that the changes are necessary in the public interest.

Background: SAED on Petroleum Exports

India imposes Special Additional Excise Duty on certain petroleum exports as a mechanism to capture windfall gains arising from elevated international fuel prices. The rates are reviewed periodically based on movements in global crude oil prices, refining margins and export economics.

Since the introduction of the windfall tax framework, the Government has frequently adjusted SAED rates on crude oil, diesel and ATF depending upon prevailing market conditions. The latest increase suggests that the Government continues to see scope for additional revenue collection from exports of refined petroleum products.

Impact on Oil Refiners and Exporters

The revised duty structure is expected to marginally increase the export cost of diesel shipments while significantly raising the tax burden on ATF exports. Refiners with substantial export exposure may need to reassess export economics in light of the higher duty incidence.

Industry participants will also closely monitor future reviews by the Ministry of Finance, as SAED rates have historically been revised at short intervals in response to changes in international energy prices and refining margins.

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