Govt caps HSD crack at $38 per barrel for 3 months

MG News | October 20, 2026 at 09:39 AM GMT+05:00

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October 20, 2026 (MLN): The federal cabinet has approved amendments to the crude-based pricing mechanism for High Speed Diesel (HSD), setting a ceiling of $38.00 per barrel on the HSD crack for the Iran-US war period. The floor stays at $11.33 per barrel.

The changes amend the HSD pricing mechanism approved by the cabinet on August 19, 2026. They were approved on a Petroleum Division summary dated October 19, 2026, and conveyed to the Oil and Gas Regulatory Authority (OGRA) by the Directorate General (Oil) under the Ministry of Energy (Petroleum Division).

Under the revised mechanism, the corresponding seven-working-day average crack will be used to determine the maximum allowable crack, up to the $38 ceiling.

The revised crude-based pricing mechanism for HSD will continue for a further three months. The government may reconsider it before that period ends if the geopolitical situation improves and international prices decline rapidly.

All other parameters for pricing petroleum products will remain as per existing practice. OGRA has been asked to take appropriate action for immediate implementation and to inform all concerned.

Parameter	Revised Mechanism
HSD crack ceiling (upper cap)	$38.00/bbl
HSD crack floor (lower limit)	$11.33/bbl
Crack basis	Corresponding 7-working-day average, up to the ceiling
Extension period	3 months (reviewable earlier)
Other pricing parameters	Unchanged, as per existing practice

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