The final decision will be taken by the Ministry of Finance on Thursday by adjusting the taxes on petroleum products.
The regulator has proposed a decrease of Rs33.94 per litre, or 31.6 percent, in the price of high-speed diesel (HSD).
In case government approves the recommended price reduction of the regulator, the price of HSD will reduce to Rs73.31 per litre from the existing price of Rs107.25 per litre.
The HSD has impact on inflation as it is mainly used in transport and agriculture sectors.
Any cut in its price would have a direct impact on the life of the masses as it will reduce up the rate of inflation.
The regulator has suggested a reduction of Rs20.68 per litre, or 21.4 percent, in the price of petrol, which is mainly used in general public.
If approved, the petrol price will come down to Rs75.9 per litre from Rs96.58 per litre.
The Ogra has suggested a further cut of Rs24.57 per litre, or 39.3 percent, in the price of light diesel oil (LDO), which is an industrial fuel.
If the government accepts the recommendation, its price will come down to Rs37.94 per litre from Rs62.51 per litre.
The Ogra has proposed a reduction of Rs44.07 per litre, or 56.8 percent, in the price of kerosene oil.
Its price will go down from the current Rs77.45 to Rs33.38 per litre.
Kerosene is used for cooking purposes, especially in the far-off areas where liquefied petroleum gas (LPG) or pipeline gas is not available.
The oil and gas regulator computing the ex-depot prices of petroleum products on standard 17 percent general sales tax (GST) on all petroleum products.
Apart from that, it collects petroleum levy on the sale of these products.
Petroleum levy stands at Rs24.20 per litre on diesel, Rs18.90 per litre on petrol, Rs6 on kerosene oil, and Rs3 on light diesel oil.
Pakistan is a net importer of petroleum products and meets almost 85 percent of its needs through imports.
The rupee depreciation has played a key role in increasing petroleum product prices, which has fuelled inflation in the country.
Sources said that the government is likely not to pass full impact of international prices to consumers in a bid to increase rate of petroleum levy to pocket more revenue from the consumers.
In March, the federal government announced Rs15 per litre and assured to further reduce the prices.
Last month, Special Assistant on Petroleum Nadeem Babar said that there would be a massive reduction in petroleum levy for the next three months.
The sum of the relief on petroleum prices has been put at Rs75 billion.
Pakistan has nothing to do with the crash of West Texas Intermediate (WTI) prices as the imports of Pakistan's crude oil and petroleum products are mostly based on long-term contracts with Kuwait, Saudi Arabia and the United Arab Emirates.