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

The federal cabinet has approved changes to the crude-based pricing formula for High Speed Diesel (HSD), according to Mettis Global. The revised formula caps the HSD crack at $38.00 per barrel, while the floor stays at $11.33 per barrel. The ceiling applies to the Iran-US war period, and the amendments have been passed to the Oil and Gas Regulatory Authority (OGRA) for immediate implementation.

Under the new arrangement, the maximum allowable crack is set from the average crack over seven working days, but it cannot exceed the ceiling. The changes amend the mechanism the cabinet had approved on August 19, 2026. A Petroleum Division summary from October 19, 2026 underpinned the decision, and other elements of petroleum product pricing remain unchanged under existing practice.

The revised arrangement runs for three more months, though the government can revisit it sooner should the geopolitical backdrop ease and global prices fall quickly. OGRA has been asked to act immediately and inform all concerned parties, according to Mettis Global.