Windfall Tax Reset from 1 October 2026: SAED on ATF Exports Cut to ₹10.5/Litre, Diesel and Petrol Revised Up

Exporters of refined petroleum products face another fortnightly reset of the windfall tax. From 1 October 2026 the Special Additional Excise Duty (SAED) on exports of Aviation Turbine Fuel (ATF) has been cut sharply, while the levy on diesel and petrol exports has been revised upward — a reminder that this duty moves with global crude and product cracks every two weeks.

What Happened

The Finance Ministry issued Notification No. 53/2026-Central Excise on 30 September 2026, amending the base SAED notification (No. 08/2026-Central Excise), to cut the windfall tax on ATF exports from ₹15 per litre to ₹10.5 per litre — a reduction of ₹4.5 per litre, effective 1 October 2026.

In the same fortnightly cycle, a companion notification (No. 52/2026-Central Excise) revised the SAED on diesel exports, and the levy on petrol exports was also adjusted. Press reporting on the cycle indicates the diesel and petrol export levies were moved upward even as ATF was eased. Exact per-litre figures for diesel and petrol in this fortnight should be read directly from the notifications, as they change each cycle.

Why / Background

India introduced the Special Additional Excise Duty — popularly the "windfall tax" — in July 2022 to capture a share of the unusually high margins refiners and producers earned when global crude and refined-product prices spiked. The government reviews the rates every fortnight based on the average international prices of crude and products in the preceding two weeks, raising the levy when cracks widen and cutting it when they narrow. The 1 October reset — easing ATF while nudging diesel/petrol up — reflects those relative movements in the latest window.

Who's Affected

• Refiners and petroleum-product exporters, for whom SAED is a direct, variable cost on each export cargo.
• Oil marketing and trading companies managing export economics fortnight to fortnight.
• Customs brokers (CHAs) and documentation teams filing shipping bills for ATF, diesel and petrol exports.

Note: the SAED is levied on exports of these products; the government has stated there is no change to the duty on petrol and diesel sold for domestic consumption under these notifications.

Operational Detail

Because the SAED is an excise levy reset every fortnight, the rate that applies is the one in force on the relevant date for your shipping bill. Export pricing, hedges and contract clauses tied to the windfall tax need to track the fortnightly notifications rather than a fixed annual figure. A cut (as on ATF this fortnight) improves export netbacks; an increase (as on diesel/petrol) compresses them.

What Exporters and CHAs Should Do Now

• Update export netback and pricing models for the 1 October fortnight — lower SAED on ATF, higher on diesel/petrol.
• Read Notifications 52 and 53/2026-Central Excise for the exact per-litre rates applicable to each product this cycle.
• Align shipping-bill filing to the rate in force on the applicable date to avoid short-levy or excess-payment issues.
• Set a fortnightly review reminder — the next revision is expected around mid-October — and build it into cargo scheduling.
• Reflect the levy correctly in export contracts where price is linked to statutory duties.

The Bigger Picture

The windfall tax has become a structural, if volatile, feature of India's petroleum-export economics. Its fortnightly cadence means exporters cannot set-and-forget their duty assumptions; even a single cycle's swing of a few rupees per litre materially changes cargo margins. The direction of travel depends entirely on global crude and product cracks, so treasury and logistics teams should monitor each notification as it lands.

Frequently Asked Questions

What is the windfall tax / SAED? A Special Additional Excise Duty on exports (and, for crude, on domestic production) of specified petroleum products, introduced in July 2022 and reviewed every fortnight based on international prices.

What changed on 1 October 2026? SAED on ATF exports was cut from ₹15 to ₹10.5 per litre; the levy on diesel and petrol exports was revised (reportedly upward) in the same cycle.

Does this affect domestic fuel prices? No. These notifications concern the levy on exports; the government has indicated no change to duties on petrol and diesel for domestic consumption.

How often does the rate change? Typically every two weeks, based on average international crude and product prices in the preceding fortnight.

This summary is for general guidance. Petroleum-product exporters and CHAs should read Notification Nos. 52/2026 and 53/2026-Central Excise in full on the CBIC portal and confirm the current fortnight's rates before filing.