Petrol and high-speed diesel will become costlier in Himachal Pradesh from August 12 after the state government imposed an Orphan and Widow Cess of 60 paise per litre on both fuels. The new levy is aimed at generating dedicated funds for welfare measures for economically weaker widows and orphans.
How Much More Will Petrol And Diesel Cost?
Consumers will pay an additional 60 paise per litre on petrol and high-speed diesel purchased in Himachal Pradesh. A 10 litre purchase will cost Rs 6 more, while buying 50 litres will add Rs 30 to the bill. For a vehicle with a 40 litre fuel tank, a full tank will cost an additional Rs 24. A 100-litre purchase will attract Rs 60 in additional cess.
When Will The New Fuel Cess Take Effect?
The cess came into force from midnight on August 11, 2026, according to a notification issued by the Himachal Pradesh State Taxes and Excise Department. The levy will be collected at the point of first sale in Himachal Pradesh.
Why Has Himachal Pradesh Imposed The Cess?
The government has introduced the Orphan and Widow Cess to create a dedicated and sustainable source of revenue for welfare schemes aimed at widows and orphans from economically weaker sections. The levy was introduced under Section 6-A of the Himachal Pradesh Value Added Tax Act, 2005, following the passage of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, by the state Legislative Assembly in March.
Is The 60 Paise Cess Additional To Existing Fuel Taxes?
Yes. The new cess will be imposed in addition to taxes already applicable under the existing VAT framework. This means the 60-paise levy will be added to the existing tax burden on petrol and high-speed diesel.
Can The Himachal Government Increase The Cess?
The amended law allows the state government to impose the Orphan and Widow Cess of up to Rs 5 per litre on petrol and high speed diesel. However, the current notification sets the levy at 60 paise per litre, which is significantly below the maximum limit permitted under the amended legislation.
