Fuel prices set to go up in Himachal as assembly clears bill
Shimla, March 24 -- The Himachal Pradesh legislative assembly on Monday passed the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026 -proposing imposing a widow and orphan cess on petrol and high-speed diesel-with voice vote amid uproar by the Opposition BJP.
The proposed levy will increase fuel prices across the state. The state government say the bill aims to generate steady source of income for welfare schemes for orphans and widows. Speaking in the House, CM Sukhu said, "It (Protest) is regrettable .. The maximum limit for this cess is Rs.5, now, whether we choose to levy 10 paise or Rs.2, is at our discretion."
Defending the decision and slamming the opposition, Sukhu said, government is committed to strengthening economically weaker sections. "If we are taking steps for the welfare of widows and orphaned children, the opposition should support it instead of opposing," he said.
"Jai Ram Thakur is merely parroting the rhetoric of Punjab's Aam Aadmi Party. Look at our intent; our concern lies with those children who have lost their parents and those women's who have lost their husbands. This decision will simply bring our rates on par with those states. Our sentiments lie with orphaned children and widowed women." He also maintained that even after the increase, fuel prices in Himachal would remain lower than in neighbouring Punjab and Haryana. "We have conducted a thorough study on this matter," he said.
Hitting out at BJP, CM said, "Go to PM Modi, who levies a cess of Rs.27, ask him to reduce it first. PM Modi funds the Kisan Samman Nidhi scheme using the cess collected on petrol and diesel. Yet, they have discontinued our Revenue Deficit Grant. Why is the BJP so hostile towards Himachal?"
The Opposition, however, termed the hike as an "additional burden" on people already grappling with inflation. It argued that the increase could push petrol prices beyond Rs.100 per litre and diesel above Rs.90, making fuel costlier than in adjoining states. "We opposed this bill because we believe that making petrol and diesel more expensive will put an economic burden on the people. It will not only affect those who own vehicles-whether commercial or private, even scooters and bikes-but will also increase overall inflation, impacting all sections of society," said BJP state media in-charge and MLA from Naina Devi, Randhir Sharma.
"We boycotted the proceedings," he said.
Leader of Opposition Jai Ram Thakur said, "The current reality is that in order to sustain its administration, the government is now raising funds in the name of widows and orphans; this money is being collected solely to keep the government running."...
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