The Ministry of Finance has notified fresh amendments to central excise duty rates applicable to petroleum products, revising specific duty components on petrol and diesel with effect from 16 July 2026. The changes have been introduced through Notification Nos. 38/2026-Central Excise and 39/2026-Central Excise, both issued on 15 July 2026.
What Has Changed?
Under Notification No. 38/2026-Central Excise, the Central Government has amended Notification No. 06/2026-Central Excise dated 26 March 2026. The revised rates are:
- Rs. 2.5 per litre against Serial No. 1
- Rs. 15.5 per litre against Serial No. 2
These rates replace the earlier entries specified in the notification. The amendments will come into force from 16 July 2026.
Separate Revision Through Notification No. 39/2026
In a parallel move, the Government has also amended Notification No. 08/2026-Central Excise dated 26 March 2026.
As per the notification, the rate against Serial No. 1 has been revised to:
- Rs. 14.5 per litre
The revised rate will also be effective from 16 July 2026.
Legal Basis for the Amendments
The notifications 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. The Government stated that the amendments have been made in the public interest.
Impact on Fuel Taxation
The notifications revise specific excise duty components applicable to petroleum products. Such changes are closely watched by oil marketing companies, fuel dealers, transport businesses, and consumers as they can influence the overall tax structure on petrol and diesel.
While the notifications specify revised duty rates, the impact on retail fuel prices will depend on how oil marketing companies adjust pricing after considering global crude oil prices, exchange rates, and other taxes.
Key Takeaway
The Central Government has revised certain central excise duty rates on petroleum products through Notifications 38/2026-Central Excise and 39/2026-Central Excise. The revised rates of Rs. 2.5 per litre, Rs. 15.5 per litre, and Rs. 14.5 per litre will take effect from 16 July 2026, replacing the earlier notified rates.
Click here to view/download the official copy of the notification
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