The Ministry of Finance (Department of Revenue), in a fresh move impacting the central excise duty structure on petroleum-related products, has issued Notification No. 22/2026-Central Excise and Notification No. 23/2026-Central Excise, bringing revisions to excise duty rates effective May 16, 2026. The amendments were officially notified in the Gazette of India on May 15, 2026, signaling another policy-level adjustment in India's indirect tax framework.
The latest notifications amend earlier notifications issued on March 26, 2026, under the powers granted by Section 5A of the Central Excise Act, 1944, read with Section 147 of the Finance Act, 2002. According to the government, the revisions have been introduced in the public interest.
Changes Under Notification No. 22/2026-Central Excise
Under Notification No. 22/2026-Central Excise, the Central Government has revised duty rates specified in the earlier Notification No. 06/2026-Central Excise dated March 26, 2026.
As per the amendment:
- The duty rate under Serial Number 1 has been revised to Rs. 3 per litre.
- The duty rate under Serial Number 2 has been revised to Rs. 16.5 per litre.
These substituted entries will come into force from May 16, 2026.
Notably, the notification also clarifies that the principal notification had earlier undergone amendments, with the last modification being made through Notification No. 19/2026-Central Excise dated April 30, 2026.
Changes Introduced Through Notification No. 23/2026-Central Excise
In a parallel amendment, the Finance Ministry has also issued Notification No. 23/2026-Central Excise, modifying provisions under Notification No. 08/2026-Central Excise dated March 26, 2026.
The latest revision substitutes the applicable duty entry under Serial Number 1 with a revised rate of:
- Rs. 16 per litre
This revised rate is also effective from May 16, 2026, as officially notified by the government.
The notification further notes that the principal notification was last amended via Notification No. 20/2026-Central Excise dated April 30, 2026, reflecting continued policy adjustments in the excise regime.
Conclusion
Although GST has replaced excise duty for most goods and services in India, petroleum products continue to remain partly outside the GST framework, making central excise duty an important taxation mechanism for fuel-related products.
Any revision in excise duty rates often attracts industry attention as it can influence pricing, government revenue collection, and downstream market costs. However, the government notifications do not explicitly mention consumer price impact, leaving the practical effect to market dynamics and administrative implementation.
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