Govt rejects JI demand to end petroleum levy, offers fuel relief to some sectors

The government has refused to end the petroleum levy, according to Jamaat-e-Islami (JI), but has agreed to provide fuel cost relief to the agriculture sector, public transport and certain categories of vehicles.

JI made the statement on Tuesday after its latest round of talks with government representatives. Acting JI Emir Liaquat Baloch spoke at a press conference after a meeting with Deputy Prime Minister and Foreign Minister Ishaq Dar.

Baloch said negotiations on removing the levy had reached their final stage. He said the government acknowledged that JI's demands were valid after the party's nationwide protest campaign and its six-point proposals.

According to Baloch, the government would complete work on oil refinery profits and a gradual end to the petroleum levy on Monday, and a working paper would be prepared on Tuesday. JI Emir Hafiz Naeem ur Rehman will announce the party's next step after reviewing the final draft agreement.

The Foreign Office gave a more cautious account. It said both sides held candid discussions on relief for low-income citizens hit by rising energy costs, and agreed to keep talking over the coming days. It did not confirm any agreement to remove the levy.

Government negotiators told JI that fuel prices depend on international oil rates, which are rising, and that they had already given every possible relief.

Petrol and diesel prices will stay the same until a final deal is signed and notified. Farmers, transporters and some vehicle owners would be the first to benefit from the reported relief. The government aims to collect Rs. 1.6 trillion from the petroleum levy in FY27.