Himachal Pradesh Raises Petrol-Diesel Prices, Shimla Petrol Crosses ₹103

August 12, 2026

Himachal Pradesh: Petrol and high-speed diesel prices have increased by 60 paise per liter in Himachal Pradesh. The state government has implemented an Orphan and Widow Cess on the first sale of petrol and diesel. This decision came into effect at 12 midnight. The increased prices are likely to impact not only the general public but also tourism and the apple trade.

Cess imposed on the first sale of petrol and diesel

According to a notification issued by the State Tax and Excise Department, this cess will be imposed at the time of first sale of petrol and diesel in the state. The government has implemented this provision under Section 6-A of the Himachal Pradesh Value Added Tax (HPVAT) Act, 2005.

Following the hike, petrol in Shimla has become ₹103.08 per liter and diesel ₹95.27 per liter. This could increase travel expenses for tourists visiting Himachal from other states, including Punjab, Haryana, and Chandigarh.

Impact on Tourism and Taxi-Bus Fares

Approximately 12.5 million to 17.5 million tourists visit Himachal every year. According to estimates, tourists visiting the state purchase fuel worth approximately ₹225 crore annually. The increased prices of petrol and diesel could make their travel more expensive than before.

The rising fuel prices could also impact taxi and bus operators. Consequently, a hike in transportation fares is expected in the future.

Apple Farming Costs Will Also Increase

The increase in fuel prices could also impact Himachal’s approximately ₹5,500 crore apple industry. Currently, the apple season is at its peak in the state, and trucks are primarily used for apple transportation.

The rising diesel prices are likely to increase transportation costs, which will directly impact apple transportation and farmers’ costs.

Cess provision was made in the budget

The Congress government passed the Himachal Pradesh Value Added Tax Amendment Act 2026 in the Assembly’s budget session this year. It provided for a cess of up to ₹5 per liter for the welfare of needy communities, especially widows and orphans.

However, due to tensions between Iran and the US and Israel at the time, petrol and diesel prices at the central level changed several times. Consequently, the state government was unable to implement the cess for nearly four months. Now, the government has decided to implement it.