The Special Additional Excise Duty (SAED) is a type of excise duty levied by the Central Government, primarily on specified petroleum products, and is a provision under the Finance Act, 2002. It is a concept, not a standalone Act, and is an additional levy over and above the basic excise duty. The SAED mechanism is governed by Section 147 of the Finance Act, 2002, with the specific rates detailed in the Eighth Schedule of the same Act. The Central Government uses its powers under Section 3B of the Central Excise Act, 1944, read with Section 147 of the Finance Act, 2002, to revise the tariff rates.
The duty is frequently used as a tool for immediate fiscal intervention and revenue generation. For instance, the SAED on High-Speed Diesel (HSD) was recently increased to ₹24 per litre on April 11, 2026, through Notification No. 14/2026–Central Excise, amending the Eighth Schedule. This followed a significant reduction on March 27, 2026, where the SAED on petrol was cut to ₹3 per litre and the levy on diesel was eliminated entirely, down from previous rates of ₹13 per litre and ₹10 per litre, respectively. The SAED is distinct from the older Additional Duties of Excise (Goods of Special Importance) Act, 1957, which was created to replace State sales taxes on goods like sugar and tobacco, with proceeds shared with the States.