The federal government is moving toward deregulating petrol and diesel prices, with Petroleum Minister Ali Pervaiz Malik saying on Tuesday that the long-awaited refinery upgrade policy is expected to be approved by the Economic Coordination Committee (ECC) by July 15.

Briefing the National Assembly Standing Committee on Petroleum, Malik said the policy has already been submitted to the federal cabinet and would pave the way for modernizing Pakistan’s refineries and producing Euro V-standard fuels once cleared.

He said the government is gradually stepping back from directly determining petroleum prices and shifting toward a market-based pricing mechanism. According to the minister, fuel prices have been announced transparently for the past two decades, and Pakistan is now moving toward deregulation.

Malik also assured lawmakers that the government would not allow refinery inefficiencies to be passed on to consumers, saying it remained committed to protecting the public from additional financial pressure.

Explaining why domestic fuel prices remain high despite lower international crude oil rates, he said Pakistan imports nearly 70 percent of its petrol and about 33 percent of its diesel needs. Higher refining, insurance and shipping costs, he added, continue to keep imported fuel expensive.

The minister noted that while crude prices have returned to pre-conflict levels, refined petroleum products have not seen a similar decline. He also said petroleum levy and carbon levy rates are still below the levels imposed on February 27, but the cost of imported fuel continues to restrict any meaningful drop in domestic prices.

During the meeting, lawmakers also expressed concern over the implementation of official LPG prices and the use of corporate social responsibility funds by petroleum companies. The committee directed the Petroleum Division to submit further details on billions of rupees in unspent CSR funds in Sindh and Balochistan.