The Ministry of Finance has made changes to the tax structure of the energy sector in India. In this regard, the Department of Revenue has made changes to the basic excise duty structure of 2019 through Notification No. 05/2026-Central Excise dated March 26, 2026.

This change has been made in the Special Additional Excise Duty (SAED) of essential fuels in the country.

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The ​key findings & statutory changes mentioned in the notification are as follows;

• ​The amendment merely replaces the rates mentioned in the duty table by prescribing a specific duty rate of Rs. 3 per litre for one category and a Nil duty rate for another.
• ​A significant amendment provides the rates prescribed in this amendment shall not apply to the goods cleared for export.
• ​The changes have been made under Section 5A of the Central Excise Act, 1944 as amended by Section 147 of the Finance Act, 2002.
• ​In the interest of public interest the government has made it mandatory for the changes to come into effect immediately on the date of the notification.

​By reducing the Special Additional Excise Duty for domestic consumption, the government aims to mitigate inflationary pressures on petrol and diesel.The government is trying to reduce the burden of Special Additional Excise Duty on petroleum products for domestic consumption.

This notification is a significant move by the Indian government in terms of its petroleum policy. By offering relief to domestic consumers this notification has clearly demarcated the line for those in the export market. For those in the petroleum business it is a pressing concern for them to update their models in accordance with these new petroleum duty rates as G.S.R. 204(E) is to be implemented immediately.

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