Jamaat-e-Islami (JI) Emir Hafiz Naeemur Rehman has claimed that the price of petrol could fall by as much as Rs106 per litre if the government abolishes the petroleum levy and removes certain taxes imposed on the commodity.
Speaking on Geo News programme Capital Talk on Tuesday, the JI chief strongly criticised the latest increase in petroleum prices, calling the move unfair to consumers. He argued that the government could have reduced the petroleum levy instead of increasing the burden on the public.
The remarks came after the government raised petrol and high-speed diesel (HSD) prices amid volatility in international oil markets.
Petrol Price Increased by Rs12.90
Under the latest daily review, the government increased the price of petrol by Rs12.90 per litre, while the price of high-speed diesel went up by Rs3.72 per litre.
Hafiz Naeem described the increase as a major burden on consumers and argued that the petroleum levy was a government-imposed charge that was unrelated to fluctuations in global oil prices.
He claimed that the government had collected around Rs1,567 billion through the petroleum levy in one year.
“Our demand is that it should be abolished,” the JI emir said, maintaining that the party’s ongoing campaign was focused on public issues rather than personal or political interests.
JI Says IMF Programme Is Being Cited
According to Hafiz Naeem, government representatives told the JI that the petroleum levy could not simply be abolished because Pakistan was operating under its programme with the International Monetary Fund (IMF).
He said the government had cited pressure to meet IMF targets and maintain fiscal commitments as a reason for retaining the levy.
However, the JI leader said his party had presented proposals that it believed could allow the government to eliminate the petroleum levy while addressing its financial requirements through other measures.
Hafiz Naeem also argued that a 3% reduction in the policy rate could have an impact of more than Rs1,600 billion, suggesting that monetary and fiscal measures could be used to create economic relief.
Government Raises Petrol Price by Rs5.77, Diesel by Rs6.47 Per Litre
JI Seeks Support From Opposition Parties
The JI emir also called on opposition parties to join his party’s campaign against the petroleum levy.
“We want the opposition to participate in our protest,” he said, urging political parties to support the campaign on the grounds that the issue directly affects the public.
He added that the JI would consider “all options” if the government failed to accept its demands.
The party has continued its protest campaign while holding negotiations with the government over the issue.
Long March Warning for September 10
Hafiz Naeem issued a fresh warning that the JI could announce a long march if the government failed to provide a positive response on abolishing the petroleum levy.
He said that if the government did not give a satisfactory response during a planned meeting on Thursday, he would announce the long march on September 10.
The warning comes as the JI continues negotiations alongside its protest campaign, seeking changes to the taxation and pricing structure of petroleum products.
Government Says Proposals Being Examined
Planning Minister Ahsan Iqbal said the proposals presented by the JI on September 7 had been forwarded to the relevant ministries.
According to Iqbal, the proposals should be implemented without delay if they are found to be feasible.
He also confirmed that the government team would meet the JI delegation again on Thursday.
However, Iqbal attributed the recent increase in petrol prices to regional conditions, while clarifying that decisions regarding the policy rate are taken by the State Bank of Pakistan rather than the federal government.
The JI had earlier said it submitted six proposals related to the petroleum levy during talks with the government. The party has maintained that negotiations will continue, but its protest campaign will also remain active.
JI leader Liaquat Baloch said after Monday’s negotiations that the government had collected more revenue from the petroleum levy than the amount originally targeted in the federal budget.
The government and JI are now expected to hold another round of talks, with the outcome potentially determining whether the protest movement escalates further and whether the party proceeds with its planned long-march announcement.
