The Oil and Gas Regulatory Authority (Ogra) has suggested a reduction of Rs7.23 per litre in the price of high-speed diesel (HSD) and Rs5.79 per litre in petrol price for the month of March.

The regulator has sent the report to the Energy Ministry which would then be sent to the Finance Ministry for approval.

Development comes after oil prices have plunged to their lowest since January 2019, as further novel cases of coronavirus outside China have fanned concerns that a pandemic may slow the global economy and erode crude demand.

Brent’s crude Oil contract was down 90 cents, or 1.7pc, on Friday at $50.83 a barrel, a 14-month low. The international benchmark, which dropped about 2pc on Thursday, has shed about 12pc this week, and has been on track since mid-January 2016 for its steepest weekly decline.

If the government approves the recommendation of the Ogra, the petrol price will decrease from the current Rs116.6 per liter to Rs110.81 per liter and the current Rs127.26 per liter will decrease the HSD price to Rs120.03 per liter.