Windfall Tax on ATF Export Raised by Rs. 3 per litre to Rs. 12.5 per litre w.e.f. 16 June, 2026

· Impact – Petroleum Products May Exports which are Down by 14% to 12.2% to Hit $8.42 bn

The Central Government has increased the Special Additional Excise Duty (SAED) on the export of Aviation Turbine Fuel (ATF) by ₹3 per litre, from ₹9.5 per litre to ₹12.5 per litre, effective 16 June 2026.

Key Highlights

· Notification: No. 31/2026-Central Excise dated 15 June 2026

· Effective Date: 16 June 2026

· Commodity: Aviation Turbine Fuel (ATF)

· Previous SAED Rate: ₹9.5 per litre

· Revised SAED Rate: ₹12.5 per litre

· Increase: ₹3 per litre

Amendment

The notification amends Notification No. 08/2026-Central Excise dated 26 March 2026 by substituting the existing SAED rate for ATF exports with “₹12.5 per litre”.

Trade Impact

· Exporters of ATF will face a higher export duty burden from 16 June 2026.

· The increase reflects the Government's periodic review of windfall taxes and export duties on petroleum products based on international market conditions.

[Notification No. 31/2026-Central Excise dated 15^th June, 2026]

G.S.R...(E).- In exercise of the powers conferred by Section 5A of the Central Excise Act, 1944 (1 of 1944) read with Section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 08/2026- Central Excise, dated the 26th March, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i), vide number G.S.R. 207 (E), dated the 26th March, 2026, namely:-

In the said notification, in the Table, against serial number 1, in column (4), for the entry, the entry “Rs. 12.5 per litre” shall be substituted.

2. This notification shall come into force with effect from 16th June, 2026.

[F. No. 190349/13/2026-TRU]