Himachal Pradesh Imposes Fuel Cess for Widow and Orphan Welfare

The Government of Himachal Pradesh imposed a Widow and Orphan Cess of 60 paise per litre on petrol and high-speed diesel effective midnight on August 11, 2026. Authorized by the State Taxes and Excise Department under the Himachal Pradesh Value Added Tax Act of 2005, the levy is collected at the first point of sale. The measure follows the passage of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, which permits a maximum cess of 5 rupees per litre. In Dharamshala, the tax contributed to price increases of up to 71 paise for petrol and 69 paise for diesel.

Chief Minister Sukhvinder Singh Sukhu stated the cess ensures sustainable revenue for welfare programs. In addition to the fuel levy, the government introduced a milk cess on electricity bills. Congress MP Sukhdeo Bhagat defended the taxes as necessary welfare measures, claiming the state had limited revenue alternatives after failing to receive promised central assistance following a disaster.

Opposition to the move came from BJP MP Manoj Tiwari, who criticized the administration's governance. Local residents and taxi operators also expressed concern that the price hikes would exacerbate inflation and place an undue financial burden on middle- and lower-income families.