Government, Jamaat-e-Islami to Hold Talks on Abolishing Petroleum Levy

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The government and Jamaat-e-Islami will discuss the party’s demand to abolish the petroleum levy as nationwide protests over rising fuel prices resume.

The government and Jamaat-e-Islami (JI) negotiating committees are scheduled to meet in Islamabad on Friday to discuss the party’s demand for the complete abolition of the petroleum levy, as JI prepares to resume nationwide protests over rising fuel prices.

JI Deputy Emir Liaquat Baloch said Thursday that the meeting had been arranged following a telephone conversation with Planning Minister Ahsan Iqbal. Prime Minister Shehbaz Sharif is also expected to meet JI Emir Hafiz Naeemur Rehman during the negotiations.

Baloch confirmed that JI would hold demonstrations across the country on Friday to press the government to withdraw the levy. He said negotiations and protests would continue simultaneously until the public received meaningful economic relief.

The party has vowed to maintain its protest campaign until the government accepts its demand to eliminate the charge.

JI launched its protest movement on Aug. 16, organising sit-ins in Karachi, Lahore, Peshawar and Quetta against the petroleum levy, rising fuel prices and inflation. The party accused the government of placing an excessive financial burden on ordinary citizens and called for lower petrol prices.

On Sept. 3, JI organised a nationwide shutdown strike. The government and the party subsequently agreed to establish technical committees to examine proposals for reducing the levy and fuel prices. During the first round of negotiations on Sept. 7, JI submitted six proposals aimed at providing relief to consumers.

However, several rounds of discussions failed to produce an agreement. The government cited economic constraints and its commitments under the International Monetary Fund programme, while JI maintained its demand for the complete withdrawal of the levy.

On Sept. 20, the party launched a long march toward Islamabad, beginning its journey by train from Karachi. The caravan reached Sukkur before proceeding toward Multan, where JI chief Hafiz Naeemur Rehman addressed supporters.

Prime Minister Shehbaz Sharif later contacted Rehman and requested that the march be postponed, offering to hold discussions on measures to ease the public’s financial burden. JI agreed to suspend the march to allow negotiations to continue but did not withdraw its demands.

Despite further discussions in the following weeks, the government and JI have yet to resolve their differences over the petroleum levy.

The levy is a federal charge on petroleum products that contributes to government revenue. It also adds to the cost consumers pay for fuel, affecting household budgets and transportation expenses.

JI argues that abolishing the levy would provide direct financial relief to people struggling with inflation. The government, meanwhile, faces the challenge of addressing public demands for lower fuel prices while meeting its fiscal commitments under the IMF programme.

Friday’s meeting will provide another opportunity for the two sides to discuss the dispute. However, JI has made clear that its nationwide protest campaign will continue alongside negotiations.

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