Punjab Newsline | New Delhi

The Central Government has revised the Special Additional Excise Duty (SAED) on the export of petrol, diesel, and Aviation Turbine Fuel (ATF). A notification regarding the new rates was issued on May 15, 2026, and the revised structure came into effect from May 16, 2026.

New SAED Rates Announced

Petrol exports will now attract SAED of ₹3 per litre.

  • Diesel exports will be taxed at ₹16.5 per litre.

  • ATF (aviation fuel) exports will be charged ₹16 per litre.

  • The Road and Infrastructure Cess (RIC) has been kept at zero for all three fuels.

The government clarified that domestic retail prices of petrol and diesel will remain unaffected by this revision.

What is SAED and How It Works?

SAED is a dynamic tax mechanism that the government reviews every two weeks based on average global crude oil and fuel prices.

When international crude prices rise, refiners tend to increase exports due to higher profit margins, which can impact domestic fuel availability. SAED is used to discourage excessive exports by making them less attractive. When global prices soften, the duty is reduced accordingly.

This system was first introduced on March 27, 2026, amid geopolitical tensions in West Asia to ensure stable domestic fuel supply.

Impact of Global Oil Price Fluctuations

In April 2026, crude oil prices had surged above $120 per barrel. In response, SAED on diesel was increased to ₹55.5 per litre and ATF to ₹42 per litre.

As prices eased, the duty was reduced on May 1 to ₹23 per litre for diesel and ₹33 per litre for ATF. With the latest revision on May 16, rates have been further lowered to ₹16.5 and ₹16 per litre respectively.

Petrol Brought Under SAED for First Time

A key change in this revision is the introduction of SAED on petrol exports. Until now, petrol was not subject to this levy, but the government has now imposed ₹3 per litre.

Officials stated that even though crude oil prices have moderated, petrol exports remain profitable for refiners. The move is aimed at balancing export incentives with domestic supply security.