Shimla, August 12
Himachal Pradesh government has increased the price of petrol and high-speed diesel by imposing an Orphan and Widow Cess of 60 paise per litre, with the levy coming into force from midnight on August 11.
The State Taxes and Excise Department issued a notification on August 11 under Section 6-A of the Himachal Pradesh Value Added Tax Act, 2005, authorising the levy at the point of first sale of petrol and high-speed diesel in the state.
The notification states verbatim: “In exercise of the powers conferred by section 6-A of the Himachal Pradesh Value Added Tax Act, 2005 (Act No. 12 of 2005), the Governor of Himachal Pradesh is pleased to levy Orphan and Widow Cess @ Rs. 0.60 (60 paisa) per litre on Petrol and High Speed Diesel at the point of first sale in the State of Himachal Pradesh.” It further says: “This notification shall come into force w.e.f. 11.08.2026 at midnight.”
The move comes at a time when Union Road Transport and Highways Minister Nitin Gadkari has been facing criticism over the government’s policy of blending ethanol with petrol. The E20 programme has triggered a public debate over fuel efficiency, vehicle compatibility and its impact on consumers. Gadkari has defended ethanol blending, while the Centre has maintained that the programme is aimed at reducing oil imports and strengthening energy security.
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The Himachal government had recently brought legislation to create a statutory mechanism for raising money for the welfare of orphans and widows. The Himachal Pradesh Value Added Tax (Amendment) Bill, 2026 amended Section 2 of the principal Act by inserting the definition of “Orphan and Widow Cess” as the cess levied under Section 6-A.
The amendment also inserted Section 6-A, empowering the government to levy and collect an Orphan and Widow Cess on petrol and high-speed diesel at the point of first sale. The provision allows the cess to be fixed at a rate not exceeding Rs 5 per litre.
The legislation provides that the money collected through the cess will be credited to the Orphan and Widow Welfare Fund and used for the welfare of orphans and widows.
In its Statement of Objects and Reasons, the government said it was providing financial assistance and welfare support to orphans and widows belonging to economically weaker sections through various schemes. It said a stable and sustainable source of revenue was required for effective implementation of such welfare measures.
The government had also stated that the proposed levy would mobilise resources for the welfare of orphans and widows while keeping the burden on consumers within reasonable limits. The maximum rate was therefore kept at Rs 5 per litre, leaving the government the power to notify the actual rate.
With the latest notification, the government has fixed the levy at 60 paise per litre—well below the statutory ceiling of Rs 5 per litre.
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