Petrol and high speed diesel have become costlier in Himachal Pradesh from Tuesday midnight, with the state government notifying a cess of 60 paise per litre on both fuels under the Himachal Pradesh Value Added Tax (VAT) Act, 2005.
The notification, issued by the State Tax and Excise Department under Section 6-A of the HP VAT Act, applies the cess at the point of first sale of petrol and high speed diesel. Following the hike, petrol prices in Shimla will rise from ₹102.45 to ₹103.05 per litre.
The state cabinet had recently approved the cess as a dedicated mechanism to generate additional financial resources for welfare schemes run for orphaned children and widows. The government states that revenue collected through this cess will be channelled exclusively into strengthening these social security programmes.
Departmental officials noted that 60 paise was deliberately kept as a minimal levy, and that even after the revision, petrol and diesel in Himachal Pradesh remain cheaper compared to neighbouring states.
The announcement is, however, likely to trigger a political debate, with opposition parties expected to question the government’s decision to pass the burden of welfare funding onto consumers at the fuel pump.
