The Oil and Gas Regulatory Authority (OGRA) has recommended a cut of Rs7.23 per litre in the prices of petroleum products.

A summary in this regard was sent to the Petroleum Division on Friday and the Finance Ministry would make a decision on the proposed cut in the prices on Saturday. The price of petrol is likely to be decreased by Rs5.89 per litre and high speed diesel Rs7.23 per litre. The new prices will be applicable from March 1.

Earlier, the government increased fuel prices in January, taking the petrol price to Rs116.60 per litre with an increase of Rs2.61. The decision was taken on the recommendation of OGRA. A notification issued by the Finance Ministry said that new rates for the most widely used fuel in large vehicle engines and generators — High Speed Diesel (HSD) — had been raised by Rs2.25 to Rs127.26 per litre.

An official of the state-owned oil company PSO said that January was not the month of heavy consumption of diesel and petrol in the country, as there was limited activity in the farm sector. Movement of trucks too remains limited in January due to occasional fog on highways.