Government Revises Excise Duty Rates on Petroleum Products Through Three Fresh Notifications
The Ministry of Finance has issued three separate Central Excise notifications revising duty rates applicable to petroleum products. The amendments were notified on August 3, 2026, and have come into force with immediate effect from the date of their publication in the Official Gazette.
The changes have been introduced through Notification Nos. 40/2026-Central Excise, 41/2026-Central Excise, and 42/2026-Central Excise. All three notifications amend earlier notifications issued on March 26, 2026, under the powers conferred by the Central Excise Act, 1944 and the relevant provisions of the Finance Acts.
Notification No. 40/2026-Central Excise
Under Notification No. 40/2026-Central Excise, the government has amended Notification No. 06/2026-Central Excise dated March 26, 2026.
The revised rates specified in Column (4) of the table are:
- Serial No. 1: Rs. 3.5 per litre
- Serial No. 2: Rs. 24 per litre
These rates replace the earlier entries contained in the principal notification. The amendment has been made in public interest and became effective immediately on publication in the Gazette.
Notification No. 41/2026-Central Excise
The government has also amended Notification No. 08/2026-Central Excise through Notification No. 41/2026-Central Excise.
As per the amendment, the rate against Serial No. 1 in Column (4) of the table has been substituted with:
-
Rs. 22 per litre
The revised rate applies from August 3, 2026, the date on which the notification was published in the Official Gazette.
Notification No. 42/2026-Central Excise
Through Notification No. 42/2026-Central Excise, the Finance Ministry has amended Notification No. 11/2026-Central Excise dated March 26, 2026.
The amendment substitutes the rate specified against Serial No. 2 in Column (4) of the table with:
-
Rs. 1.5 per litre
The notification has been issued under Section 5A of the Central Excise Act, 1944 read with Section 112 of the Finance Act, 2018 and took effect immediately upon publication.
Immediate Effect
All three notifications expressly provide that they shall come into force on the date of their publication in the Official Gazette, i.e., August 3, 2026. The amendments form part of the government's ongoing adjustments to excise duty and cess structures applicable to petroleum products.
The notifications were issued by the Department of Revenue, Ministry of Finance, and signed by Dheeraj Sharma, Under Secretary.
Key Takeaway
The latest notifications revise specific per-litre duty rates under existing Central Excise notifications governing petroleum products. Stakeholders in the petroleum, refining, transportation and fuel distribution sectors should review the revised rates to assess any operational, compliance or pricing implications arising from the amendments.
CAclubindia
