The Himachal Pradesh government has initiated the process to impose a welfare cess on petrol and diesel for the benefit of widows and orphaned children in the state. The State Excise and Taxation Department on Thursday issued a notification to district officials after the Himachal Pradesh Value Added Tax (Amendment) Act, 2026, received approval from the Lok Bhawan.
The government, however, has not yet decided the exact amount of cess to be levied on petrol and High-Speed Diesel. Officials said the date from which the cess will be implemented is also yet to be finalised.
The amendment bill was passed during the budget session of the Himachal Pradesh Legislative Assembly in March. Through this legislation, the government secured the authority to impose an “Orphan and Widow Cess” of up to ₹5 per litre on petrol and diesel sold in the state.
According to the amended provisions of Section 6-A of the Himachal Pradesh Value Added Tax Act, the cess will be collected at the point of first sale from dealers dealing in petrol and High-Speed Diesel. The exact rate will be notified separately by the government through an official notification.
The funds generated through the cess will be deposited into the “Orphan and Widow Welfare Fund,” aimed at supporting widows and orphaned children belonging to economically weaker sections.
The proposal had triggered opposition during the Assembly budget session, with opposition parties alleging that the move would further burden people already struggling with rising fuel prices and inflation.
Responding to the criticism, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu had clarified that the bill was introduced only to obtain legal authority for imposing the cess. He stated that the government would later decide the amount of cess, if any, to be imposed on petrol and diesel.
The Chief Minister had also said that the government retained the option not to impose the cess at all. He maintained that any final decision would be taken after necessary approvals and keeping public interest in mind.
The Statement of Objects and Reasons attached with the bill stated that the government would ensure that the proposed cess does not impose any undue burden on consumers.
The development comes amid a rise in fuel prices at the national level. The Centre has increased retail prices of petrol and diesel in four metro cities from Friday, marking the first hike in retail fuel prices for consumers in the last four years. The price of CNG has also been increased by ₹2, while premium petrol prices had earlier been revised upward in March.
With the amendment now approved, the state government is expected to take a final call on the cess amount and implementation timeline in the near future.
