# Petroleum levy relief: govt and JI committees close in on a deal for 800cc and 1,000cc car owners and farmers

Source: Searchable (https://searchable.pk/news/economy/petroleum-levy-relief-govt-and-ji-committees-close-in-on-a-deal-for-800cc-and)
Type: News article
Author: Searchable Editorial
Published: 4 Nov 2026
Updated: 4 Nov 2026
Retrieved: 4 Nov 2026

> Government and Jamaat-e-Islami committees are working on a draft agreement to phase out the petroleum levy, with first relief aimed at small-car owners and agriculture, ARY News reports.

The federal government and Jamaat-e-Islami (JI) have moved closer to an agreement on petroleum levy relief, with committees from both sides meeting to finalise a draft, [ARY News reported](https://arynews.tv/govt-ji-move-closer-to-agreement-on-petroleum-levy-relief) on Wednesday, 4 November 2026, citing sources.

According to the report, the government has agreed in principle to three things:

- **Phase out the petroleum levy gradually**, rather than scrapping it in one go.
- **Give relief to owners of 800cc and 1,000cc vehicles**, the small cars most families and taxi drivers run.
- **Extend relief to the agriculture sector**, where diesel drives tractors, tube wells and harvesters.

No per-litre figure has been reported yet. Leaders on both sides are expected to review and approve the final draft once the committees finish.

## Who is at the table

JI is represented by Nasrullah Randhawa and Syed Farasat Shah. The government side includes federal ministers Ahsan Iqbal and Rana Sanaullah, with officials.

## How we got here

JI has campaigned for weeks for the levy to go, with sit-ins in districts from 23 October ([background](/news/economy/petroleum-levy-ji-chief-refuses-pm-shehbaz-meeting-without-a-cut-sets-12-oct)). The government has meanwhile moved to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961; its amendment bill proposes jail for oil companies that skip paying the levy ([our report on the bill](/news/economy/petroleum-levy-amendment-bill-2026-goes-to-national-assembly-today-as-ji-pushes)).

The levy is a fixed charge per litre built into every pump price, so any cut reaches drivers directly. It is also one of the government's largest non-tax revenue sources, which is why the talks centre on a gradual phase-out and targeted relief rather than an immediate end.

## What it could mean for you

Until a figure is announced, nobody can say how much a tank will cost. What you can do now:

- Track the pump price on our [petrol price page](/data/petrol-price) and [diesel price page](/data/diesel-price), which carry PSO's ex-depot Karachi readings and their history.
- Work out your monthly fuel bill with the [fuel cost calculator](/tools/cars/fuel-cost-calculator), then rerun it when a relief figure is notified.
- If you drive an 800cc or 1,000cc car, watch for how the relief is delivered: a scheme tied to engine size would need some way to check your vehicle's registration.

Nothing changes at the pump until the government issues a notification. We will update this story when the draft is signed or the relief is announced.

## Frequently asked questions

**Has the petroleum levy been abolished?**

No. As of 4 November 2026 government and JI committees were finalising a draft deal to phase it out gradually. Nothing changes until a notification is issued.

**Who would get relief first?**

According to ARY News, the government agreed in principle to relief for owners of 800cc and 1,000cc vehicles and for the agriculture sector.

## Sources

- Govt, JI move closer to agreement on petroleum levy relief (ARY News): https://arynews.tv/govt-ji-move-closer-to-agreement-on-petroleum-levy-relief

How to cite: "Petroleum levy relief: govt and JI committees close in on a deal for 800cc and 1,000cc car owners and farmers", Searchable, 4 Nov 2026, https://searchable.pk/news/economy/petroleum-levy-relief-govt-and-ji-committees-close-in-on-a-deal-for-800cc-and