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

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 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). 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).

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 and diesel price page, which carry PSO's ex-depot Karachi readings and their history.
• Work out your monthly fuel bill with the 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.