The Sukhwinder Singh Sukhu government in Himachal Pradesh has imposed an orphan and widow cess on petrol, which became effective from midnight on August 11, 2026. According to the notification issued by the Himachal Pradesh State Taxes and Excise Department under Section 6-A of the Himachal Pradesh Value Added Tax Act, 2005, the Orphan and Widow Cess will be charged at Re 0.60 (60 paise) per litre on both petrol and high-speed diesel. The cess will be collected at the first point of sale within Himachal Pradesh, meaning it will be imposed before the fuel moves through subsequent stages of sale in the state. The notification has been issued with the approval of the Council of Ministers, following months after the Himachal Pradesh Legislative Assembly passed an amendment allowing the state government to impose a widow and orphan cess of up to ₹5 per litre on petrol and high-speed diesel.
Following the imposition of the cess, petrol prices in Himachal Pradesh will rise to ₹102.50 per litre. As reported, this represents a 60 paise increase from current rates. The additional levy will have significant impact on consumer fuel costs, with a 10-litre purchase attracting an additional ₹6 in cess, while a 40-litre fill-up will cost ₹24 more and a 50-litre purchase will attract ₹30 in cess. The price adjustment will be implemented across all districts in the state, affecting both petrol and high-speed diesel prices. The revenue generated from this cess will be used for the welfare of widows and orphaned children in the state.
According to current pricing data, petrol prices vary significantly across districts in Himachal Pradesh. Chamba currently charges ₹102.62 per litre, while Shimla and Sirmaur both stand at ₹102.45 per litre. Other districts show lower rates, with Solan at ₹100.97 per litre, Una at ₹100.57 per litre, Mandi at ₹101.51 per litre, and Kangra at ₹101.42 per litre. The new cess implementation will increase all district prices uniformly by 60 paise.
Chief Minister Sukhvinder Singh Sukhu introduced the proposal during the state Budget Session in March 2026, emphasizing the need for a dedicated and predictable source of funding for welfare measures aimed at widows and orphaned children. The government stated that a dedicated cess would provide a steady source of funding for welfare programmes, instead of relying entirely on annual budgetary allocations. Himachal Pradesh already runs welfare schemes for widows and orphaned children, with the new levy intended to provide an additional source of revenue for these programmes. The notified rate of 60 paise per litre is substantially below the ₹5-per-litre ceiling permitted under the amended legislation, providing flexibility for future adjustments.
The move has drawn criticism from the petroleum dealers' association, which described the levy as 'unjustified'. The association expressed concern that the additional charge could encourage motorists, particularly in border areas, to buy fuel from neighbouring states where prices may be lower. This could hurt fuel sales within Himachal Pradesh and potentially reduce revenue from existing fuel taxes as well as the new cess. The levy will be charged in addition to existing taxes under the state's VAT framework, with the government balancing welfare funding needs against potential revenue impacts from cross-border fuel purchases.
