Centre Notifies New Excise Duty Rates on Petroleum Products Effective 1st July 2026

The Ministry of Finance, Department of Revenue, has issued two notifications revising the Special Additional Excise Duty (SAED) rates applicable to petroleum products. The revised rates will come into force from July 1, 2026, following amendments notified through Notification No. 36/2026-Central Excise and Notification No. 37/2026-Central Excise.

The amendments have been issued under the powers conferred by Section 5A of the Central Excise Act, 1944, read with Section 147 of the Finance Act, 2002, in the public interest. The notifications further amend earlier excise notifications issued on March 26, 2026.

Revised Duty Rates Under Notification No. 36/2026

As per Notification No. 36/2026-Central Excise dated June 30, 2026, the Government has revised the rates specified in the relevant notification table. The amended rates are:

• Rs. 4 per litre against Serial Number 1.
• Rs. 8.5 per litre against Serial Number 2.

These revised rates replace the earlier entries specified under Notification No. 06/2026-Central Excise dated March 26, 2026. The notification explicitly states that the changes shall take effect from July 1, 2026.

Amendment Under Notification No. 37/2026

In a separate notification, the Ministry has also amended Notification No. 08/2026-Central Excise. Under Notification No. 37/2026-Central Excise, the entry against Serial Number 1 in the notification table has been substituted with a revised rate of:

• Rs. 7.5 per litre.

This amendment will likewise become effective from July 1, 2026.

Impact of the Notifications

The latest revision reflects the Government's continuing practice of periodically adjusting special additional excise duties on petroleum products in response to revenue requirements and market conditions. The revised rates will be applicable across the country from the beginning of July and are expected to influence the overall duty structure applicable to fuel products.

Tax professionals, fuel companies, and other stakeholders dealing with petroleum products should take note of the revised rates and ensure compliance with the updated duty structure from July 1, 2026.

Click here to view the official copy of the notification