With the current fuel pricing model set to expire at the end of the month, the ministry has proposed that diesel and regular 95-octane petrol remain subject to price regulation. Prices of premium fuel and heating oil will be liberalised, government documents show.

The draft decree has been sent to government, which is due to debate it at Thursday's session.

The two most widely sold fuels will continue to be determined in line with a fortnightly pricing model based on the price of fuels on world markets, the dollar-euro exchange, a set profit cap and excise duty.

The model has been in place since 2000, but voices have grown for deregulation of fuel prices in recent months.

Fuel retailers especially say this would benefit local consumers, with petrol prices at pumps in built up areas expected to drop while those on the motorways rise.

The proposal is the first step towards full deregulation. The Economic Development and Technology Ministry expects that premium petrol provides a substitute for regular and would therefore act as a good test case of price liberalisation.

It is also confident that competition on the market of heating oil is sufficient to ensure that the move does not work to the detriment of consumers.

If confirmed by the government, the new decree will enter into force on 9 February.