JI rejects PM Shehbaz’s fuel relief scheme, says it cannot substitute for abolition of petroleum levy

JI rejects PM Shehbaz's fuel relief scheme, notes it cannot substitute for abolition of petroleum levy.

Key points

• Ahmad Fraz Khan Published September 15, 2026 Updated September 15, 2026 10: 31pm.
• ISLAMABAD: The Jamaat-I-Islami (JI) on Tuesday rejected the prime minister's Fuel Relief Scheme, saying it could not substitute for the abolition of the petroleum levy.
• The administration levies Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.
• "The government has told the JI that negotiations with IPPs have resulted in savings of Rs4, 600 billion, " Baloch remarked.
• JI has been staging regular sit-ins in Lahore, Peshawar, Karachi and dozens of other locations nationwide since August 16 to protest the levy.

Ahmad Fraz Khan Published September 15, 2026 Updated September 15, 2026 10: 31pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

On Sunday, PM Shehbaz confirmed a "relief scheme" for users of motorcycles, rickshaws and vehicles of up to 800cc to "alleviate the burden" of rising global oil costs.

In practice, the JI delegation, led by JI Deputy Emir Liaquat Baloch and comprising Syed Farasat Shah, Nasrullah Randhawa, Inayatullah Khan and Ziauddin Ansari, held the third round of discussions with the administration in Islamabad.

Petroleum Minister Ali Pervaiz Malik, Energy Minister Awais Khan Leghari, Law and Justice Minister Azam Nazeer Tarar and Minister of State for Finance Bilal Azhar Kayani represented the administration.

Talking to the media after the session on Tuesday, Baloch stated administration task forces set up by the prime minister provided detailed briefings on petroleum rates and independent power producers (IPPs). Energy Minister Leghari briefed the JI team on progress in negotiations with IPPs.

Baloch remarked the JI had categorically rejected the Rs100 petrol relief, insisting that the party's protest movement would continue until the petroleum levy was completely abolished.

He remarked the administration was trying to divert public pressure through temporary relief measures, whereas consumers could receive genuine relief only if the levy was withdrawn.

According to Baloch, taxes and levies had placed an extra burden of around Rs130 on consumers. He remarked reducing this burden would provide meaningful relief to the public.

Criticising the ruling elite, he remarked the administration was unwilling to cut its own expenditure and accused successive governments of patronising influential groups, including the sugar mafia.

While negotiations with another 36 IPPs were at an advanced stage, on the IPP matter, he stated the administration had informed the JI delegation that matters concerning 54 IPPs had been finalised.

"If such a huge saving has been made, why has its benefit not been passed on to the people?" Baloch asked, adding that the government's briefing had validated figures previously presented by the JI.

He additionally questioned the utilisation of funds collected under the climate backing levy, saying the funds had not been spent for its intended purpose.

"The government will not be able to escape public pressure until the petroleum levy is abolished, " he cautioned, saying residents from nationwide would head towards Islamabad.

In practice, the discussions between the administration and JI began on Sept 7 after the two sides agreed to form committees comprising experts to discuss recommendations for reducing the petroleum levy and providing relief to the public.

For context, the administration levies Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

Last week, the JI chief had cautioned the administration that the ongoing protest would march towards Islamabad on September 20 if the levy was not withdrawn.

Ahmad Fraz Khan is a Lahore-based reporter for Dawn with four decades of experience in the field. His reporting portfolio includes coverage of agriculture, the energy sector, and religio-political parties. He can be discovered on X at @AFKhan.

Taken together, the developments around JI rejects PM Shehbaz's fuel relief scheme, says it cannot substitute for point to a situation that is still moving, and the coming days should bring more clarity.