Govt and Jamaat-e-Islami meet today to finalise petroleum levy deal: phased abolition, relief for small cars and farmers

Committees of the federal government and Jamaat-e-Islami (JI) meet today, Wednesday 4 November 2026, to finalise a draft agreement on abolishing the petroleum levy, ARY News reported, citing sources. No agreement has been announced, and the details below are from those sources, not from an official statement.

What the draft is said to contain

According to ARY's sources:

• The government has agreed in principle to withdraw the levy gradually, not in one step.
• It is willing to give relief to owners of vehicles up to 800cc and 1,000cc.
• It has also agreed to extend relief to the agriculture sector.

The JI team is named as Nasrullah Randhawa and Syed Farasat Shah. The government side is led by Federal Minister Ahsan Iqbal and Rana Sanaullah, with officials. After the committee talks, the leadership of both sides is expected to review and approve the final draft.

How we got here

Earlier, ARY reported, the federal government decided to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961. The amendment follows criticism of the levy and of high petrol prices, which have weighed on low-income households. JI has been demanding that the levy be abolished. We covered the bill in our report on the petroleum levy bill 2026 and the earlier JI sit-ins.

What it could mean at the pump

A phased withdrawal would lower the per-litre price only as each stage takes effect, so the first change would be smaller than the full levy. Until a notification is issued, prices stay as OGRA notifies them. For scale, our earlier explainer on a one-year scrapping worked out Rs 3,200 off a 40-litre tank at the rates of that time.

To see what your own monthly fuel spend would be at different prices, use the fuel cost calculator. The live price history is on the petrol price page.

What to watch

The deal is not done until the leaderships sign off, and any change to the levy needs a legal amendment or a government notification. We will update this page when either side confirms the terms.