JI presses govt for petroleum levy abolition, fuel relief as talks enter ‘final stage’

ISLAMABAD: The government and Jamaat-e-Islami (JI) on Tuesday held another round of talks on petroleum prices and relief for low-income consumers, with the party saying negotiations over the abolition of the petroleum levy and a relief package had entered their final stage.

Deputy Prime Minister and Foreign Minister Ishaq Dar met a JI delegation led by its Naib Amir Liaquat Baloch to discuss measures to ease the economic burden on ordinary citizens amid rising energy costs.

According to a Foreign Office statement, the two sides held discussions on practical measures to provide relief to the public, particularly low-income households, and agreed to continue consultations over the coming days to develop a way forward on energy pricing and public relief.

Dar reiterated the government’s commitment to prioritising public welfare and facilitating ordinary citizens amid global economic challenges. He also stressed the importance of sustained dialogue among political parties to address the country’s economic challenges.

The meeting was attended by Planning Minister Ahsan Iqbal, Prime Minister’s Adviser on Inter-Provincial Coordination Rana Sanaullah, Special Assistant to the Prime Minister Tariq Bajwa, Secretary Finance and the Petroleum Division’s Special Secretary.

JI says talks on levy abolition nearing conclusion

Speaking to the media after the meeting, Baloch said negotiations with the government on abolishing the petroleum levy and providing relief to consumers had entered their final stage.

Baloch said the two sides had discussed four key points from six proposals put forward by JI. These included the abolition of the petroleum levy, a relief package for consumers, reducing public transport costs and extending assistance to the agricultural sector and owners of vehicles above 800cc.

He said both sides would prepare working papers on a gradual reduction of the levy and other relief measures. The government was expected to complete its paper, while representatives of the two sides would meet again on Wednesday to discuss further progress.

Baloch said JI chief Hafiz Naeemur Rehman would review the proposed agreement before the party announced its future course of action. Rehman, who is currently in Turkiye, had been briefed on the progress of the negotiations, he added.

The JI leader maintained that the party’s primary objective was to secure substantial relief for consumers, criticising the government over the petroleum levy and what he described as excessive profits earned by oil refineries.

He said the party would continue negotiations but would also press ahead with its protest plans if the proposed package failed to provide meaningful relief. JI has warned that it could resume its march towards Islamabad from Multan in mid-November if its demands are not met.

Background to negotiations

The latest meeting followed talks between Prime Minister Shehbaz Sharif and JI chief Hafiz Naeemur Rehman on October 27, when the two sides agreed to establish a joint committee to recommend ways to expand the government’s fuel relief scheme and prepare proposals for a phased reduction in the petroleum levy.

The government representatives on that committee included Dar, Ahsan Iqbal and Rana Sanaullah, while JI was represented by Baloch and other party leaders.

The existing fuel subsidy scheme, launched nationwide on September 17, covers motorcycles, rickshaws and vehicles with engines of up to 800cc. The government has said the initiative is intended to ease the impact of higher petroleum prices on lower-income consumers.

JI has been demanding the abolition of the petroleum levy, arguing that it adds to the financial burden on households. The party had postponed its planned march to Islamabad following the prime minister’s offer of negotiations, but has maintained that it would take to the streets if the talks fail to produce substantial relief.