SAED Rates on Petrol and Diesel Revised from 16th July 2026

The Central Government has issued Notification No. 38/2026-Central Excise dated 15 July 2026 under Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002, further amending Notification No. 06/2026-Central Excise dated 26 March 2026 relating to the levy of Special Additional Excise Duty (SAED) on petroleum products.

The notification revises the rates specified in the Table to Notification No. 06/2026 and comes into force with effect from 16 July 2026.

The revised rates are:

Accordingly, Notification No. 38/2026:

• reduces the Special Additional Excise Duty on motor spirit (petrol) from ₹4 per litre to ₹2.5 per litre; and
• increases the Special Additional Excise Duty on high speed diesel oil from ₹8.5 per litre to ₹15.5 per litre.

The amendment is made by substituting the entries in column (4) of the Table against serial numbers 1 and 2 of Notification No. 06/2026-Central Excise.

The principal Notification No. 06/2026-Central Excise, issued on 26 March 2026, exempted specified petroleum products falling under tariff heading 2710 from so much of the Special Additional Excise Duty leviable under Section 147 read with the Eighth Schedule to the Finance Act, 2002 as exceeded the rates specified in the notification. It originally prescribed:

• Nil Special Additional Excise Duty on Motor Spirit (Petrol); and
• ₹12 per litre on High Speed Diesel Oil.

Subsequently, Notification No. 36/2026-Central Excise dated 30 June 2026, effective from 1 July 2026, amended these rates to:

• ₹4 per litre for Motor Spirit (Petrol); and
• ₹8.5 per litre for High Speed Diesel Oil.

Notification No. 38/2026-Central Excise now supersedes those rates by prescribing ₹2.5 per litre for petrol and ₹15.5 per litre for diesel from 16 July 2026.

The notification does not amend the other conditions contained in Notification No. 06/2026-Central Excise, including the provisions relating to exports and exports by Public Sector Oil Companies to Nepal, Bhutan, Bangladesh and Sri Lanka.

MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 38/2026-Central Excise | Dated: 15th July, 2026

G.S.R. 631(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 makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 06/2026-Central Excise, dated the 26^th 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 26^th March, 2026, namely:-

In the said notification, in the Table,

i. against serial number 1, in column (4), for the entry, the entry “Rs. 2.5 per litre” shall be substituted;

ii. against serial number 2, in column (4), for the entry, the entry “Rs. 15.5 per litre” shall be substituted.

2. This notification shall come into force with effect from 16^th July, 2026.

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

Note.- The principal notification No. 06/2026-Central Excise, dated the 26^th March, 2026  was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 205(E), dated the 26^th March, 2026 and last amended by notification No. 36/2026-Central Excise dated 30th June, 2026 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 537(E), dated 30^th June, 2026.