Himachal Pradesh Imposes 60 Paise Widow and Orphan Cess on Fuel

Fuel prices in Himachal Pradesh increased on Wednesday after the state government implemented a new Widow and Orphan Cess of 60 paise per litre on petrol and high-speed diesel. The levy, which took effect from midnight on August 11, is intended to generate dedicated revenue for welfare programs supporting widows and orphaned children.

The State Taxes and Excise Department issued a notification on August 12 under Section 6A of the Himachal Pradesh Value Added Tax Act, 2005, authorizing the collection at the first point of sale within the state. The move follows the passage of the Himachal Pradesh Value Added Tax Amendment Bill, 2026, by the state Legislative Assembly during the Budget Session earlier this year. That amendment empowered the government to impose a cess of up to Rs 5 per litre on petrol and high-speed diesel, meaning the current rate is significantly below the maximum permitted ceiling.

In Dharamshala, petrol prices rose by approximately 71 paise per litre, while diesel prices increased by about 69 paise. The additional cost means a 10-litre fuel purchase will now cost Rs 6 more, while filling a 40-litre tank will add Rs 24 to the bill. The cess is applied in...