Petrol & Diesel Prices To Increase In Himachal Pradesh, Govt Passes Bill

Residents of Himachal Pradesh are set to face higher fuel prices after the state Assembly passed a Bill allowing an increase of up to Rs 5 per litre on petrol and diesel, a move the Congress government says will help fund welfare schemes for widows and orphaned children. The amendment to the state’s Value Added Tax law was cleared on Monday despite strong opposition protests, with the government defending the decision as necessary to support vulnerable sections while the opposition called it an added burden on people already struggling with rising prices.

Fuel Price Hike Cleared

Chief Minister Sukhvinder Singh Sukhu secured passage of the Himachal Pradesh Value Added Tax (Amendment) Bill, 2026 in the Assembly after a heated discussion. The Bill allows the state government to impose an additional cess on petrol and diesel, which could increase prices by up to Rs 5 per litre.

The government said the levy, described as a welfare cess, is meant to create a regular source of income for schemes aimed at supporting widows and orphaned children. According to the government, the entire amount collected through the cess will go into a dedicated welfare fund and will be used for financial assistance and social support programmes.

The Bill was passed despite strong protests from the opposition, which argued that the move would put extra pressure on people already dealing with high prices.

Opposition Flags Price Impact

Opposition members said the increase could push petrol prices close to Rs 100 per litre and diesel beyond Rs 90, making fuel costlier than in neighbouring states. They warned that the hike would affect not only households but also farmers, transporters and the tourism sector.

They said higher fuel prices would lead to an increase in the cost of food, construction material and transportation, and could also raise bus fares. Concerns were also raised that people may prefer buying fuel in neighbouring states, leading to revenue loss for Himachal Pradesh.

Opposition members also objected to linking the cess with widows and orphaned children, saying the government should not justify a tax hike in that manner. They staged a walkout after the Bill was passed.

Responding to the criticism, Sukhu said the government’s intention was to strengthen support for weaker sections. He said the Centre also collects a large cess on petrol and diesel and claimed fuel prices in Himachal would still remain comparable to neighbouring states even after the increase.