Special Additional Excise Duty (SAED)

Why in the News?
The Ministry of Finance has reduced export duties on diesel and aviation turbine fuel (ATF), with the revised rates coming into effect immediately.

About the Decision

• Export duty on diesel has been set at ₹23 per litre.
• Export duty on ATF has been set at ₹33 per litre.
• No export duty has been imposed on petrol (unchanged).

These duties fall under levies such as Special Additional Excise Duty (SAED) and Road and Infrastructure Cess on petroleum exports.

Background
Export duties on petroleum products were introduced on 27 March 2026 to ensure adequate domestic availability amid supply disruptions linked to the West Asia crisis. By discouraging exports, the government aimed to stabilise domestic fuel supply and prices.

Objective of the Move
The reduction in duties reflects changing global and domestic market conditions. It aims to balance domestic supply security with the need to support refiners and maintain export competitiveness.