Jamaat-e-Islami has made abolition of the petroleum levy a precondition for its chief meeting Prime Minister Shehbaz Sharif, and has warned it will set a date for an Islamabad march if relief does not arrive.
To be clear about what this is: a political demand, not a decision. The petroleum levy has not been abolished, and no official notification says otherwise.
For motorists the interesting part is not the politics. It is the specific group of drivers both sides are arguing about.
What the JI Chief Said
Speaking at a press conference at Mansoorah on Saturday, JI chief Hafiz Naeemur Rehman was reported as saying: "If the petroleum levy is not abolished, we have no desire to meet the prime minister."
He said talks would be pointless without an assurance that the demand would be accepted, and that statements from ministers suggested the levy would not be abolished.
Alongside abolition, JI asked for meaningful relief for consumers and for the government to pass on the benefit of a reported five-dollar-per-barrel cut by Saudi Arabia for Asian buyers. Rehman also rejected the argument that the IMF requires the levy.
How the Meeting Came Up
The approach came from the government's side. On 6 October, Planning Minister Ahsan Iqbal who heads the government committee on the issue contacted JI vice chief Liaqat Baloch to pass on the prime minister's request for a meeting.
The prime minister also asked JI to suspend its protest march. No date, venue or agenda was reported, and as of writing no meeting has taken place. JI's answer has been to attach the condition above.
The Islamabad March Warning
JI said it would announce a date for an Islamabad march after 12 October if relief was not provided. That makes this week the one to watch the deadline has arrived, and the announcement either comes or it does not.
The campaign is not new. JI has already held 42 days of sit-ins over the levy, and says nationwide public meetings and a signature drive are continuing. No march date had been announced at the time of writing.
The Part That Actually Affects Drivers
Underneath the political argument sits a question about who the existing relief scheme covers — and that is checkable rather than rhetorical.
The scheme covers motorcycles and other two-wheelers, rickshaws and three-wheelers, and cars with engines up to 800cc. The engine limit applies to cars only. Our guide to the fuel subsidy scheme sets out how the amounts work.
Rehman's criticism is aimed squarely at that cut-off. He said the government puts coverage at 7 million people, while there are 25 million motorcycles and more than 4 million vehicles in the 1000cc to 1200cc bracket that the package does not reach. Those population figures are his, from a press conference, and we have not independently verified them.
The 800cc boundary itself is not in dispute. If you drive a 1000cc or 1300cc car which covers a very large share of ordinary households here you pay the levy and receive nothing from the relief scheme. That is the gap the argument is really about.
Has the Levy Been Abolished?
No. Here is where each piece of this actually stands.
| Item | Status |
|---|---|
| Petroleum levy abolished | No — no notification |
| JI demand for abolition | Stated publicly |
| PM–JI meeting | Requested, not held |
| Islamabad march date | Not announced |
| Existing relief scheme | Running, up to 800cc cars |
| Petrol price change from this | None |
Position as of 12 October 2026. This story is moving — check for a later announcement.
Would Petrol Get Cheaper If the Levy Went?
Removing a domestic component of the pump price would create room for relief, but nobody can tell you the new price in advance, and we are not going to pretend otherwise.
Fuel prices here move on international oil prices and the exchange rate as well as domestic taxation. A levy cut landing in the same fortnight as a crude rise can net out to very little at the pump.
It is also worth separating two different things being discussed. The government's earlier one-year petroleum levy relief proposal is temporary relief; JI is demanding permanent abolition. Those are not the same offer.
Final Thoughts
As things stand, one side wants a commitment before it will sit down and the other has not given one. Nothing at the pump has changed, and no march date exists yet.
If you drive anything above 800cc, the point to hold onto is that neither the current relief scheme nor this dispute has yet delivered you anything. Our latest petrol and diesel price update covers what you are actually paying now.
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