Centre Removes Road and Infrastructure Cess on Diesel Exports [Read Notification]

The Ministry of Finance, Department of Revenue has removed the Road and Infrastructure Cess (RIC) on exports of diesel. The revised rate came into effect from the date the notification was published in the Official Gazette.

The Ministry issued Notification No. 51/2026-Central Excise dated September 16, 2026 reducing the RIC applicable on diesel exports to Nil.

The notification amends an earlier notification issued on March 26, 2026. Before the latest change, diesel exports attracted RIC of Re 1 per litre. The Government has now completely removed the cess, bringing the rate down to zero.

The Re 1 per litre RIC had been introduced with effect from September 1, 2026.

The Centre has been reviewing export levies on petroleum products every fortnight based on changes in international prices of crude oil, petrol, diesel and Aviation Turbine Fuel (ATF).

These export levies were introduced in March 2026 as part of measures aimed at discouraging excessive exports and maintaining adequate availability of petroleum products in the domestic market amid the West Asia crisis.

The removal of the RIC was announced along with a reduction in the Special Additional Excise Duty (SAED) on diesel exports. The SAED has been reduced from Rs. 24 per litre to Rs. 20 per litre. As a result, the total levy on diesel exports has fallen from Rs. 25 per litre to Rs. 20 per litre.

The change applies specifically to diesel cleared for export. It does not change the existing excise duty rates on petrol and diesel supplied for domestic consumption in India.

The diesel duty reduction was announced along with similar cuts in export levies on petrol and ATF. From September 16, the export levy on petrol was reduced from Rs. 1.50 to Rs. 0.50 per litre, while the levy on ATF was reduced from Rs. 19 to Rs. 15 per litre.

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