Petrol Gets Nil Excise Duty While Diesel Fixed at ₹18.5/Litre with Export Limits

Seeks to levy Special Additional Excise Duty on export of petrol and diesel.

The Ministry of Finance (Department of Revenue) issued Notification No. 06/2026-Central Excise dated 26 March 2026 under section 5A of the Central Excise Act, 1944 read with section 147 of the Finance Act, 2002. In public interest, the government granted partial exemption from Special Additional Excise Duty on specified petroleum products. The notification prescribes a nil rate of duty for motor spirit (petrol) and a concessional rate of Rs. 12 per litre for high speed diesel oil. The exemption applies only to the extent the duty exceeds these specified rates. However, the notification restricts its applicability by excluding goods other than those cleared for export and also excludes exports made by Public Sector Oil Companies to Nepal, Bhutan, Bangladesh, and Sri Lanka. The provisions have been made effective immediately, thereby implementing revised duty rates and conditions on exports without delay.

MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 06/2026-Central Excise |Dated: 26th March, 2026

G.S.R. 205(E)—In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the excisable goods of the description specified in Column (3) of the Table below and falling within the Chapter, heading or sub-heading or tariff item of the Fourth Schedule to the said Excise Act, as specified in the corresponding entry in Column (2) of the said Table, from so much of the Special Additional Excise Duty leviable thereon under section 147 read with the Eighth Schedule to the Finance Act, 2002, as is in excess of the amount calculated at the rate specified in the corresponding entry in Column (4) of the said Table, namely: –

TABLE

2. Nothing contained in this notification shall apply to :-

a. any goods other than the goods cleared for export;

b. exports by Public Sector Oil Companies to Nepal, Bhutan, Bangladesh and Sri Lanka;

c. This notification shall come into force with immediate effect.

[F. No. 190349/13/2026-TRU]
DHEERAJ SHARMA, Under Secy.

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MINISTRY OF FINANCE
(Department of Revenue)

CORRIGENDUM

New Delhi, the 27th March, 2026

G.S.R. 217(E).— In the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 06/2026-Central Excise, dated the 26th March, 2026 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 205(E) dated the 26th March, 2026, at Page 5, –

in line 17, in column (4), for ‘18.5’, read ’12’.

[F. No. 190349/13/2026-TRU]
DHEERAJ SHARMA, Under Secy.