Industry Odisha Bureau, Sep 17: The Centre has lowered SAED on diesel, petrol export, and aviation fuel. The revised rates apply for the fortnight beginning September 16. SAED and road and infrastructure cess on export diesel now total ₹20. The earlier combined levy stood at ₹25 per litre.
SAED on aviation turbine fuel has been reduced to ₹15. The previous ATF export duty was ₹19 per litre. Duty on petrol export has fallen to ₹0.50 per litre. The earlier petrol export levy stood at ₹1.50 per litre.
SAED Cut Eases Export Pressure
The government introduced SAED and road infrastructure cess during March 2026. The move followed severe disruption across West Asian energy markets. Higher duties were intended to discourage excessive fuel exports.
The policy aimed to protect domestic availability of petroleum products. Export taxes have since been reviewed every fortnight. Rates depend on international crude and product prices.
Diesel Export Economics Improve
The lower levy improves economics for diesel export from Indian refineries. Export oriented refiners could see some relief on overseas sales. However, margins will still depend on global product spreads. Crude prices and freight costs remain equally important. The government can revise SAED again during future reviews.
Petrol Export Duty Falls Sharply
The petrol export levy has seen the steepest proportional reduction. Duty has been cut from ₹1.50 to ₹0.50 per litre. That could improve competitiveness for petrol shipments. However, domestic fuel security remains the government’s primary objective.
Road Infrastructure Cess Remains Policy Tool Road and infrastructure cess continues alongside SAED on diesel export. The combined levy helps regulate outbound fuel flows. It also gives the government flexibility during supply disruptions. The framework is linked closely to changing international market conditions.
Domestic Fuel Duties Stay Unchanged
There is no change in domestic petrol excise duty. Diesel cleared for domestic consumption also remains unaffected. That means retail fuel taxation remains unchanged. The latest move primarily alters refinery export economics.
Refiners Gain Limited Relief
Lower SAED provides near term relief for Indian refiners. It reduces the tax burden on diesel and petrol export. The benefit could support refinery margins during volatile energy markets. However, export incentives remain secondary to domestic supply priorities. The policy balance will continue shifting with crude price movements. For refiners, fortnightly SAED reviews remain a key earnings variable.
