The Himachal Pradesh government has officially imposed a Widow and Orphan Cess of 60 paise per litre on petrol and high-speed diesel, with the levy coming into force from midnight on August 11, 2026. The notification has been issued with the approval of the Council of Ministers.
The move follows the passage of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, by the State Legislative Assembly during its Budget session.
The levy 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 money is intended to support the welfare of orphans and widows, particularly through the state's welfare mechanisms. The legal framework provides that the money collected will go into an Orphan and Widow Welfare Fund.
An important distinction to be made is that the Rs 5 per litre figure was the maximum rate authorised by legislation, not the rate that motorists are currently being charged. The official Himachal Pradesh Rajpatra states that the cess is to be collected from dealers at the point of first sale in the state, in addition to the tax already levied under the existing VAT law.
Chief Minister Sukhvinder Singh Sukhu had said while introducing the legislation that the state already provides financial assistance and welfare support to economically weaker orphans and widows, but needed a dedicated and sustainable source of revenue in order to strengthen these measures, The Indian Express reported.
The proposal had faced objections from BJP legislators during its passage in the Assembly, with the opposition arguing that an additional fuel levy could place a burden on consumers and have an inflationary impact.
With the notification now issued, the 60 paise per litre cess has moved from the legislative stage to implementation, making it an additional component of fuel taxation in Himachal Pradesh.
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