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Petrol Pump (Img: Pinterest)
Shimla: Himachal Pradesh goverement has introduced a new cess on petrol and diesel from August 12, increasing fuel prices by 60 paise per litre. The government says the revenue will support welfare schemes for widows and orphaned children, while opposition parties and petroleum dealers have raised concerns over the additional burden on consumers.
Petrol and diesel consumers in Himachal Pradesh will now have to pay more as the state government has implemented a new ‘Widow and Orphan Cess’ on fuel sales.
Under the new notification issued by the State Taxes and Excise Department, an additional charge of 60 paise per litre will be collected on petrol and diesel. The cess will be applicable at the first point of sale when oil companies supply fuel to dealers.
While the immediate impact on consumers appears limited, the legislation allows the government to increase the cess up to ₹5 per litre, raising concerns over a possible future increase in fuel prices.
The Himachal Pradesh government has introduced the cess with the aim of creating a dedicated fund for the welfare of widows and orphaned children.
Officials argue that relying only on annual budget allocations makes it difficult to maintain long-term welfare programmes. A separate cess on fuel sales would provide a steady source of revenue for these schemes.
The move comes at a time when Himachal Pradesh is facing significant financial pressure, with rising debt, repayment obligations and concerns over reduced central financial support.
The state government has been struggling with a growing fiscal challenge. Himachal Pradesh’s debt burden has crossed the ₹1 lakh crore mark, while the state faces increasing expenditure commitments.
The government has been looking for additional revenue sources to manage welfare spending and developmental requirements.
However, critics argue that imposing additional taxes on fuel could increase the financial pressure on common citizens, including transport operators, farmers and daily commuters.
Petroleum dealers in Himachal Pradesh have questioned the decision, calling the cess an additional burden on consumers.
Dealers have warned that higher fuel prices could encourage some consumers living near state borders to purchase fuel from neighbouring states where prices may be lower, potentially affecting revenue collection.
They have also sought clarity from the government on the estimated revenue collection, number of beneficiaries and utilisation of funds collected through the cess.
The move has triggered political debate in the state, with opposition leaders criticising the government over repeated increases in fuel-related taxes.
Critics claim that people are already facing rising living costs and that additional charges on petrol and diesel could impact transportation costs and indirectly increase prices of goods and services.
Himachal Pradesh is not the first state to impose an additional cess on fuel. Several states have introduced fuel-based charges for welfare programmes, infrastructure development and environmental initiatives.
However, Himachal’s decision has attracted attention because the cess has been specifically linked to welfare support for widows and orphaned children.
For now, petrol and diesel buyers in Himachal Pradesh will pay 60 paise extra per litre. The larger question remains whether the cess will stay at the current level or increase in the future.
The government maintains that the revenue will strengthen social welfare programmes, while critics argue that the additional fuel burden needs greater transparency and accountability.
