Jamaat-e-Islami (JI) Emir Hafiz Naeem ur Rehman has claimed that petrol could become Rs106 per litre cheaper if the government withdraws the petroleum levy and certain taxes.
Speaking on Geo News’ programme Capital Talk on Tuesday, Naeem criticised the government’s decision to impose the levy, alleging that it was being used to “hide its failures”.
He maintained that fluctuations in global oil prices had no bearing on the petroleum levy, arguing that the government could provide significant relief to consumers by eliminating it.
"Last night’s Rs12 hike in petrol prices is a great injustice,” he said, adding that the levy could have been reduced instead to provide relief to the masses.
Under a daily review, the Petroleum Division last night increased the prices of petrol and high-speed diesel (HSD) by Rs12.90 and 3.72 per litre, respectively, amid volatility in the international oil market.
Naeem said the government had collected Rs1,567 billion in petroleum levy in one year.
“Our demand is that it [levy] should be abolished,” he said, adding that the JI’s protest was solely for public issues and not for personal or political gain.
Responding to a question, Naeem said the government’s team had told the JI that it was “stuck in the IMF programme” and could not abolish the levy.
He said the government had also cited pressure to meet IMF targets, adding that the JI had presented some proposals through which the levy could be eliminated.
Naeem said reducing the policy rate by 3% would have an impact of more than Rs1,600 billion.
He urged opposition parties to join the JI’s protests, saying: “We want the opposition to participate in our protest.”
“We will request all political parties to support this because it is a public issue,” he added.
The JI would use “all options”, if their demands are not accepted by the government, Naeem warned.
The JI chief later warned the government of a long march if the petroleum levy was not abolished by Thursday.
“If the government does not give a positive response on ending the levy during Thursday’s [planned] meeting, I will announce a long march,” the JI leader said.
Naeem said he would give the call for the long march on September 10.
For his part, Planning Minister Ahsan Iqbal said the JI’s proposals — shared with the government on September 7— had been sent to the relevant ministries and should be implemented without delay if found feasible.
Iqbal said the government team would meet the JI delegation again on Thursday.
He also said petrol prices were rising due to “regional conditions”, while the decision on the policy rate was taken by the State Bank of Pakistan, not by the government.
After talks with the government, the JI on Monday said it had submitted six proposals concerning the petroleum levy and would continue negotiations while keeping its protest ongoing.
"The government had collected more revenue from the petroleum levy than the target set in the budget," JI leader Liaquat Baloch had said while speaking to journalists after holding negotiations with a government team in the federal capital.
