Indian Government Reduces Special Additional Excise Duties on Petrol and Diesel

Indian Government Reduces Special Additional Excise Duties on Petrol and Diesel

The Ministry of Finance has recently issued a notification announcing a significant reduction in the special additional excise duties on petrol and diesel.

The notification (No. 05/2026-Central Excise, dated 26th March, 2026) amends an earlier notification dated 6th July, 2019. Through this notification, the central government announced cuts in the special additional excise duties on petrol to Rs 3 per litre from Rs 13 per litre. On the other hand, the special additional excise duties on diesel have been reduced to Nil from Rs 10 per litre.

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These changes are applicable with immediate effect.

As per the latest notification:

The excise duty for items listed at Sl. No. 1, in column (4), is amended to Rs. 3 per litre.
The excise duty for items listed at Sl. No. 2, in Column (4), is amended to Nil.

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The notification clearly said that the duty changes do not apply to goods cleared for export.