Pakistan on Boil Over Petrol-Diesel Levy, Nationwide Protests Challenge Shehbaz Government

The conflict between the government and opposition politics over petroleum levy seems to be increasing in Pakistan. Jamaat-e-Islami (JI) protested across the country on Friday.

Last Updated : Saturday, 08 August 2026
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Islamabad: The conflict between the government and opposition politics over petroleum levy seems to be increasing in Pakistan. Jamaat-e-Islami (JI) protested across the country on Friday. Party workers took to the streets in many cities including Karachi, Lahore, Rawalpindi, Islamabad and demanded withdrawal of petroleum levy. Traffic was affected due to demonstrations on several major roads. Party chief Hafiz Naeem-ur-Rehman had already announced to make this protest a nationwide campaign.

Why so much opposition to petroleum levy in Pakistan?

Petroleum levy is a kind of tax system imposed by the central government on petrol, diesel and kerosene. Jamaat-e-Islami alleges that the burden of this levy is falling directly on the pockets of common people. The party has been demanding relief in fuel prices and abolition of levies for a long time. Hafiz Naeem has called it an additional economic burden on the public.

What happened in Karachi and Lahore?

During the demonstration, a large number of workers gathered on the main roads of Karachi. Protest was expressed by blocking roads at some places, due to which the speed of traffic was affected. In Lahore also, party supporters took to the streets and raised slogans against the economic policies of the government. According to reports, similar demonstrations were organised in many parts of the country.

What warning did Hafiz Naeem-ur-Rehman give to the government?

Jamaat-e-Islami chief Hafiz Naeem-ur-Rehman has demanded the government immediately abolish petroleum levy. He raised questions on the economic policies of Prime Minister Shehbaz Sharif and his government. He says that the government should cut its expenses instead of increasing the tax burden on the public. The party has also made inflation, high electricity bills and fuel prices a part of its movement.

Why is Jamaat-e-Islami angry about IPP agreements?

Along with the petroleum levy, Jamaat-e-Islami has also targeted the expensive agreements signed with independent power producers i.e. IPPs. The party alleges that these agreements and energy sector policies are impacting the common consumer in the form of electricity and fuel prices. JI has demanded the government review the costly IPP agreements and take relief measures in the power sector.

Will the performance continue further?

Jamaat-e-Islami has indicated that this movement will not be limited to one day's demonstration. The party had already planned large-scale public relations and protest programmes across the country. The August 7 demonstration was projected as the second phase of the campaign. Hafiz Naeem had said that if the government did not accept the demands, the movement would be further expanded.

How much is political pressure increasing on the government?

Pakistan is already struggling with inflation, energy costs and the challenge of revenue generation. In such a situation, the issue of petroleum levy has become politically sensitive. Jamaat-e-Islami is continuously linking it to the economic crisis of the people. On the other hand, it is also a big challenge for the government to raise revenue and meet financial targets. Therefore, the possibility of further intensification of the conflict between the government and JI regarding the levy cannot be ruled out in the coming days.