Petrol- Diesel Export Tax: Amidst the rising prices of petrol and diesel, the government has now made a major change in the fuel export duty, due to which questions are arising in the minds of the people whether it will affect the pockets of the common people or not?

Petrol prices rise, government imposes Rs 3 tax

Petrol-Diesel Export Tax Update: Every time the rules related to petrol and diesel change, the first question that comes to people's minds is whether or not this will affect their pockets. Now that the government has revised the export tax on petrol, diesel, and ATF, it's crucial to understand this.

The central government issued a new notification on Friday, May 15th, revising the Special Additional Excise Duty (SAED) rates on the export of petrol, diesel, and aviation fuel (ATF). These new rates will come into effect on May 16th, 2026. However, it's a welcome relief that this will not impact the prices of petrol and diesel sold in the domestic market.

What are the new rates?

• According to the new notification, now Rs 3 per liter SAED will be charged on the export of petrol.
• Diesel will cost Rs 16.5 per litre.
• If we talk about ATF, it will cost Rs 16 per liter.
• At present, Road and Infrastructure Cess i.e. RIC has been kept zero on all three.

What is SAED and how does it work?

SAED is an additional excise charge that the government sets every two weeks based on average international crude oil and fuel prices. When global oil prices rise, refineries see higher profits from exports, leading them to sell more fuel abroad rather than domestically.

This could impact domestic supply. To prevent this, the government imposes SAED to make exports more expensive and maintain domestic supply. This system was implemented on March 27, 2026. The government first imposed this charge to ensure domestic fuel supply amid Middle East tensions.

What were the rates earlier?

It should be noted that in April, when the price of crude oil in the international market surpassed $120 per barrel, the government increased the SAED on diesel to 55.5 rupees per liter and on ATF to 42 rupees per liter. Subsequently, on May 1, when prices softened, the SAED was reduced to 23 rupees per liter on diesel and 33 rupees per liter on ATF. Now, after another reduction on May 16, diesel has reached 16.5 rupees and ATF has reached 16 rupees per liter.

Petrol charged for the first time

The biggest change this time around is the imposition of a SAED of ₹3 per liter on petrol exports for the first time. Until now, there was no such charge on petrol exports. However, the government included it in its scope because, despite a slight decline in crude oil prices, exports remain a profitable proposition for refineries. The government believes this will improve fuel availability in the domestic market.