4 min readShimlaMar 23, 2026 05:45 PM IST
First published on: Mar 23, 2026 at 05:45 PM IST
The Himachal Pradesh Assembly Monday passed the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026, proposing the the imposition of an’orphan and widow cess’ on petrol and high-speed diesel, amid strong opposition protests and a staged walkout by the BJP legislators.
The Bill seeks to levy a cess of up to Rs 5 per litre on fuel to mobilise resources for welfare schemes targeting orphans and widows from economically weaker sections.
The Opposition BJP strongly opposed the proposed cess, warning that it would increase fuel prices in the state beyond those in neighbouring regions such as Punjab, Haryana and Chandigarh.
Leader of Opposition Jai Ram Thakur said that while the state’s financial condition may not be strong, it was inappropriate to generate revenue “in the name of widows and orphans.”
“If we increase fuel prices, people will prefer to refuel from neighbouring states,” he said, adding that the move would hurt the state’s economy, particularly in border districts.
Thakur also referred to the recently introduced entry tax, which has drawn criticism from neighbouring states, especially Punjab, and urged the government to withdraw the Bill.
BJP MLA Randhir Sharma strongly opposed the amendment, cautioning that the cess would push fuel prices beyond neighbouring states.
He said that at present, petrol in Himachal Pradesh costs Rs 94.13 per litre and diesel Rs 86.23 per litre. With the imposition of a Rs 5 cess, petrol prices could touch Rs 100 per litre.
“In Punjab, petrol is around Rs 97.70 and diesel Rs 88.20. Even Chandigarh has cheaper diesel than Himachal. Increasing prices further will make our fuel the costliest in the region,” he argued.
BJP MLA Trilok Jamwal also criticised the proposal, calling it an additional burden on the public.
Senior BJP leader Satpal Singh Satti warned that petrol pumps in border districts such as Bilaspur, Una, Solan and Sirmaur would be severely affected, as consumers may shift to neighbouring states for cheaper fuel.
Satti further objected to the terminology ‘widow cess’, stating that it could offend widowed women. He added that any increase in fuel prices would have a cascading effect on inflation in the state.
Sukhu justifies cess
Responding to the criticism, Chief Minister Sukhvinder Singh Sukhu defended the Bill and criticised the Opposition for staging a walkout.
He accused BJP leaders of being “hand in glove” with petrol pump owners and said their opposition was politically motivated.
“We have proposed a maximum limit of Rs 5, but the actual cess could be much lower—Rs 0.10, Rs 0.20 or Rs 0.30 per litre,” Sukhu said.
He assured the House that fuel prices in Himachal Pradesh would not exceed those in Punjab and Haryana.
Emphasising the welfare intent behind the move, Sukhu said the cess aims to ensure that no orphan or widow in the state feels unsupported.
“We want that no orphan or widow should feel that they have no guardian,” he said, urging the Opposition to support the initiative.
The Chief Minister also asked BJP leaders to raise the issue of multiple cesses imposed by the Centre with Prime Minister Narendra Modi, alleging that the Opposition was selectively targeting the state government.
The legislation proposes an amendment to the Himachal Pradesh Value Added Tax Act, 2005, to introduce a dedicated cess on petrol and high-speed diesel at the point of first sale in the state.
According to the government, the cess will provide a stable, sustainable source of revenue for welfare schemes supporting orphans and widows.
Himachal Pradesh CM Sukhvinder Singh Sukhu justified the fuel cess (File photo). 
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