Fuel prices across Himachal Pradesh rose on Wednesday after the state government imposed a new “Widow and Orphan Cess” of 60 paise per litre on petrol and diesel.
Following the levy, petrol prices in Dharamshala increased by around 71 paise per litre, while diesel prices rose by 69 paise, ANI reported.
The move follows the Himachal Pradesh Legislative Assembly’s passage of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, during the Budget Session.
Under the amendment, the state government can impose a Widow and Orphan Cess of up to ₹5 per litre on petrol and high-speed diesel. The current levy of 60 paise per litre is significantly lower than the maximum amount permitted under the amended law.
The cess is being collected at the first point of sale within the state, meaning it is levied before the fuel reaches subsequent stages of the supply chain and is sold to consumers.
The Himachal Pradesh government has also introduced what is being referred to as a ‘milk cess’ on electricity bills.
What residents are saying
“If fuel prices go up, the price of everything else rises too. Inflation is already so high these days,” a local taxi owner told ANI regarding the fresh price hike.
He also said that taxi owners have not increased fares, but they may have to consider doing so if fuel prices continue their upward trend.
Another Dharamshala resident, ANI, said, "We are not happy with this hike. The government should also think about the poor and the middle class. It is very hard for us."
The person also said that rising levies are putting pressure on middle- and lower-income groups, while questioning how those who are employed or struggling financially would manage these additional burdens.
What BJP and Congress are saying regarding the move
The BJP has slammed the Sukhvinder Singh Sukhu government for this move, with MP Manoj Tiwari saying that these are the same people who do not let the Parliament function and do not stand up for students.
The Congress has defended the decision. MP Sukhdeo Bharat said that the Central assistance expected after the flood was not sent to the state.
“Himachal Pradesh has gone through a disaster; the Prime Minister visited and made promises. But the Central assistance that should have been provided was not received. The government has limited revenue sources and few alternatives. The taxes being imposed are for welfare measures, not for luxury or other unnecessary things,” ANI quoted him as saying.
