The Ministry of Finance has revised excise duty rates on specified petroleum products through two fresh notifications issued by the Ministry of Finance.
The Government has changed the extra excise duty on export of fuel products. From June 1, 2026, exporters will pay: ₹1.5 per litre on petrol exports, ₹13.5 per litre on diesel exports, and ₹9.5 per litre on Aviation Turbine Fuel (ATF) exports.
This is mainly an export-duty/windfall-tax adjustment, not a direct announcement of higher petrol or diesel prices at fuel pumps.
Notification No. 24/2026-Central Excise does not directly revise normal retail petrol/diesel prices. It amends an earlier notification, Notification No. 06/2026-Central Excise dated March 26, 2026, which deals with Special Additional Excise Duty (SAED) on export of petrol and diesel.
In simple terms, this notification changes the export duty / windfall tax on petrol and diesel when they are cleared for export.
| Serial No. | Product covered | Revised SAED rate from June 1, 2026 |
| Serial No. 1 | Motor Spirit, commonly known as Petrol | ₹1.5 per litre |
| Serial No. 2 | High Speed Diesel Oil | ₹13.5 per litre |
The notification states that these revised rates will come into force from June 1, 2026.
What Notification No. 25/2026-Central Excise Covers
Notification No. 25/2026-Central Excise separately amends Notification No. 08/2026-Central Excise dated March 26, 2026. That notification deals with Special Additional Excise Duty on export of Aviation Turbine Fuel (ATF).
| Notification | Product covered | Revised SAED rate from June 1, 2026 |
| Notification No. 25/2026-Central Excise | Aviation Turbine Fuel (ATF) exported outside India | ₹9.5 per litre |
This rate also applies from June 1, 2026.
Government Issues Fresh Excise Duty Notifications
The Ministry of Finance, has issued Notification No. 24/2026-Central Excise and Notification No. 25/2026-Central Excise dated May 30, 2026, amending earlier notifications issued on March 26, 2026. The notifications have been issued in exercise of powers under Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002, after the Government expressed satisfaction that the amendments were necessary in the public interest.
Revised Rates for Petroleum Products
Under Notification No. 24/2026-Central Excise, the Government has substituted the duty rates appearing against two entries in the relevant table.
The revised rates are:
- ₹1.5 per litre against Serial No. 1; and
- ₹13.5 per litre against Serial No. 2.
In a separate amendment through Notification No. 25/2026-Central Excise, the Government has revised the rate against Serial No. 1 to ₹9.5 per litre.
Both notifications will come into force from June 1, 2026.
Potential Impact on Fuel Prices
While the notifications themselves only revise the applicable excise duty rates, market participants will closely watch whether the increase translates into higher retail fuel prices. The actual impact on consumers will depend on several factors, including international crude oil prices, refining margins, inventory levels, and pricing decisions taken by oil marketing companies.
Historically, changes in central excise duties on petroleum products have had a direct bearing on the cost structure of fuel. However, the extent to which such increases are passed on to end consumers varies depending on prevailing market conditions and government policy considerations.
Part of a Broader Revenue Strategy
The latest amendments continue a series of revisions made to petroleum-related excise notifications during 2026. The notifications being amended had already undergone changes earlier this year, including amendments notified on May 15, 2026.
Tax experts note that adjustments in excise duties remain an important policy tool for balancing revenue requirements while managing volatility in global energy markets. The latest revisions are likely to be closely monitored by industry stakeholders, transport operators, businesses, and consumers alike.
Effective Date
The revised excise duty rates notified by the Government will become effective from June 1, 2026, requiring refiners, oil marketing companies, and other stakeholders in the petroleum supply chain to align their compliance and accounting systems accordingly.
The notifications have been issued by the Tax Research Unit (TRU) of the Department of Revenue and are signed by Dheeraj Sharma, Under Secretary, Ministry of Finance.
Notification Details
Notification No. 24/2026-Central Excise
Date: 20/05/2026
