The government has refused to abolish the petroleum levy despite agreeing to provide fuel cost relief to the agriculture sector, public transport and selected vehicle categories, Jamaat-e-Islami (JI) said on Tuesday.
Acting JI Emir Liaquat Baloch made the remarks after talks with Deputy Prime Minister Ishaq Dar. He said negotiations over the removal of the levy had reached their final stage following JI’s nationwide protest campaign and presentation of a six-point proposal.
According to Baloch, the government will complete its work on oil refinery profits and a gradual withdrawal of the petroleum levy. A working paper is expected to be prepared, after which JI Emir Hafiz Naeem ur Rehman will announce the party’s next move after reviewing the proposed agreement.
However, the Foreign Office said both sides had discussed fuel cost relief for low-income citizens and agreed to continue negotiations. It did not confirm any agreement to abolish the levy. The government has also cited rising international oil prices and its limited room to provide further relief.
For now, petrol and diesel prices remain unchanged. The government is targeting Rs. 1.6 trillion in petroleum levy collections during FY2027, making its removal a significant fiscal decision.
