Petroleum levy amendment bill 2026 goes to National Assembly today as JI pushes for abolition

The federal government will ask the National Assembly on Wednesday 28 October to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961, the law under which it charges a levy on every litre of petrol and diesel, ARY News reported. Petroleum Minister Ali Pervaiz Malik is due to table the Petroleum Levy and Climate Support Levy (Amendment) Bill, 2026 at a sitting chaired by Speaker Sardar Ayaz Sadiq, with 18 items on the agenda.

The same sitting is also due to take up a resolution to extend the OGRA Ordinance, 2026 by 120 days.

What we know about the bill

The text of the amendment had not been published by Wednesday afternoon, so its exact changes are not yet known. ARY reported that:

• the PML-N consulted the PPP on the amendment a day earlier;
• it comes after Prime Minister Shehbaz Sharif met Jamaat-e-Islami chief Hafiz Naeemur Rehman, whose party wants the levy abolished;
• a six-member committee (three from JI, three from the government) is to propose how to widen the fuel relief scheme and how levies could be phased out in the next federal budget, Planning Minister Ahsan Iqbal said.

JI has given the government seven to 10 days and says it will hold a long march to Islamabad in mid-November if its demands are not met. We covered the committee's formation here.

Why the levy matters to you

The petroleum levy is a fixed rupee charge on each litre, collected on top of the product's cost, margins and the climate support levy. It is one of the government's largest sources of revenue, which is why scrapping it outright is hard during an IMF programme, and why it is the main target of the protests over fuel prices.

We worked out earlier what removing it would save a driver: see petroleum levy scrapped for a year? That is Rs 3,200 off a 40-litre tank.

Will petrol get cheaper?

Not from the bill alone. Pump prices change only when the government notifies new rates, normally at the fortnightly review on the 1st and 16th of the month. PSO's ex-depot Karachi petrol price on our petrol price page stood at Rs 379.25 a litre on 28 October; the diesel price page shows Rs 395.82. Our fuel cost calculator shows what any change would mean for your monthly fuel bill.

We will update this story when the bill's text is tabled and when the Assembly votes.