The government has imposed Special Additional Excise Duty (SAED) i.e. windfall tax on the export of petrol at the rate of ₹ 3 per liter. On the other hand, the duty on export of diesel and aviation fuel (ATF) has been reduced. According to the notification issued by the Finance Ministry, these new rates have become effective from today, May 16.
According to the notification of the Finance Ministry, Special Additional Excise Duty (SAED) on diesel has been reduced to Rs 16.5 per liter, which was earlier Rs 23 per liter. Whereas the duty on ATF has been reduced from Rs 33 to Rs 16 per litre.
What will be the impact on the common consumers of the country?
It is a matter of relief for Indian consumers and the general public that this decision will not have any impact on the domestic market. There has been no change in the domestic excise duty on petrol and diesel sold for local consumption.
With this strategy of the government, there will be no increase in the retail prices of petrol and diesel within the country, due to which the budget of the common man will be saved from being affected. Also, Road and Infrastructure Cess on export of petrol and diesel has been kept zero.
The government had imposed export duty on diesel and ATF for the first time in March 2026. Later in April, it was revised several times in view of the global situation and crude oil prices. There was a huge increase in duty in the review on 11th April, while relief was given on 30th April. Now the government has also implemented tax on petrol.
According to experts, this step has been taken after the sharp increase in the prices of crude oil in the international market due to the West Asia crisis. Tensions in the region increased after the US and Israel took military action against Iran in late February and global oil prices rose above $100 per barrel. Before the war, the price of crude oil was around $73 per barrel. Another objective of this was to prevent exporters from taking unfair advantage of the difference in prices.
The government says that the objective of the windfall tax is to ensure availability of fuel in the domestic market and to prevent exporters from taking excessive advantage of international prices. This will help in giving priority to domestic supplies
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