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Hafiz Naeem demands to end the petroleum levy

Muhammad Ali (Web Desk Reporter) by Muhammad Ali (Web Desk Reporter)
August 16, 2026
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Jamaat-e-Islami protests against petroleum levy

Lahore – Jamaat-e-Islami Ameer Hafiz Naeem-ur-Rehman has announced to continue the protest against the petroleum levy. He reiterated his demand to the government to abolish the levy and bring the price of petrol to Rs 225 per litre.

Addressing a protest sit-in at Faisal Chowk Mall Road, Lahore, Hafiz Naeem said that Jamaat-e-Islami’s struggle will continue until the government accepts its demands. According to him, protests are also underway outside the Governor House in Karachi.

Hafiz Naeem criticised the petroleum levy and called it a “perquisite” and a “situational tax”. This is a stance that he has expressed before. In July, he also called for a nationwide protest against the levy.

The Jamaat-e-Islami chief also expressed reservations about the committee formed by the government. He said that the Jamaat-e-Islami would not go to Islamabad for a government briefing.

He made it clear that the basis of the negotiations should be the abolition of the petroleum levy and a significant reduction in the price of petrol. According to him, the government should talk to the protesters directly.

The government reduced the price of petrol several times in early August. From August 5, the price of petrol was fixed at Rs 328.56 per litre. At the same time, the price of high-speed diesel was Rs 385.86 per litre.

According to the Petroleum Division, at this stage, the total amount of taxes and duties on petrol was Rs 110 per litre. On diesel, it was Rs 96 per litre.

This change in prices took place after fluctuations in the global oil market. The government has also made the method of reviewing petroleum prices more dynamic in 2026 due to the global market situation.

According to official information presented in the National Assembly, the petroleum levy is a major revenue source for the government. Levy collection in the first nine months of the fiscal year till March 2026 was Rs1.205 trillion.

According to the same official response, the petroleum levy on petrol in the price structure of May 1, 2026, was Rs103.50 per litre. This amount was recorded at Rs28.69 per litre on high-speed diesel.

Hafiz Naeem has been demanding that the price of petrol be reduced to Rs225 per liter for a long time. In June, he had demanded that the government abolish the levy and additional taxes.

Jamaat-e-Islami’s position is that the benefit of the reduction in global oil prices should go directly to the consumers. The party has also demanded that the price of petrol be frozen at Rs225 per liter for three years.

Hafiz Naeem also criticized the tax system during the protest. He claimed that the salaried class is paying heavy taxes. According to him, the big landlords and privileged classes should also be effectively included in the tax system.

This objection is not limited to the price of petrol alone. Jamaat-e-Islami has also been demanding a reduction in the prices of electricity, gas and other essential commodities.

The demand to abolish the petroleum levy raises an important question in financial terms for the government. The levy is a significant source of federal revenue. Therefore, its complete abolition could have a direct impact on budget revenues.

On the other hand, the impact of the price of petrol is not limited to motorists alone. The cost of transportation, agricultural activities and essential commodities is also affected by the increase in fuel prices.

That is why both public relief and government revenue are important aspects in the debate on petroleum levy. The challenge for the government is to maintain a balance between the possible reduction in prices and financial needs.

Jamaat-e-Islami has made it clear that it will not back down from its demands. Hafiz Naeem’s latest statement shows that the protest against the petroleum levy is still part of the party’s main political campaign.

Future contacts between the government and Jamaat-e-Islami may determine the direction of the protest. However, Jamaat-e-Islami has immediately announced that it will continue the sit-in and maintain its demand for the abolition of the petroleum levy.

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Muhammad Ali is a Web Desk Reporter at The Pakistan Observer, contributing to the publication’s digital news coverage with a focus on timely, accurate and reader-friendly reporting.

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