Oil and Gas Regulatory Authority has drafted a summary to reduce petroleum prices on a recommendation forwarded by the Ministry of Petroleum. The summary encloses a recommendation that the prices of petrol products should be decreased by Rs 2.10 Rs per liter, where reduction of Rs 1.80 was suggested in high speed diesel and Rs 1.50 in light speed diesel. Furthermore, prices of Kerosene oil are also expected to fall by 3 rupees.
The move comes in the wake of reducing oil prices around the world. The oil prices have witnessed a substantial decline due to an oil glut despite extension in cuts from OPEC countries.
The US has boosted the supplies of Shale oil in to the market which has resulted in an oil glut crippling the oil based economies in turn. A meeting held on last Thursday in Vienna between OPEC members, came to an accord the cuts will be extended further till March of next year.
Despite the agreement to extend the cuts into next year, the oil prices continued to fall downward.