Jamaat-e-Islami Emir Hafiz Naeem ur Rehman on Tuesday said petrol prices could fall by Rs106 if the government removed the levy and some taxes on the commodity. Speaking on "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 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 Jamaat-e-Islami'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 Jamaat-e-Islami 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 Jamaat-e-Islami 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 Jamaat-e-Islami'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 Jamaat-e-Islami would use "all options", if their demands are not accepted by the government, Naeem warned. For his part, Planning Minister Ahsan Iqbal said the Jamaat-e-Islami'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 Jamaat-e-Islami 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 Jamaat-e-Islami 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," Jamaat-e-Islami leader Liaquat Baloch had said while speaking to journalists after holding negotiations with a government team in the federal capital.