ISLAMABAD: High-Speed Diesel (HSD) crack spread dropped to USD38 per barrel from USD41.89 per barrel, according to OGRA’s daily pricing update.
The decline covers a three-month period.
According to the notification, HSD crack of USD38 per barrel shall be applied as the ceiling/ upper cap while USD 11.33 per barrel will remain as the floor/ lower limit for the determination of HSD prices.
Corresponding seven working days average crack will be used to determine the maximum allowable crack up to the ceiling of USD38 per bbl.
“The revised crude based pricing mechanism for HSD to be continued for a further period of three months. However, if the geopolitical situation improves and international prices register a rapid decline, the government may reconsider the mechanism before the expiry of the said period,” the notification says. All other parameters for pricing of petroleum products shall remain applicable as per existing practice.
The government has lowered the refinery margin component used in HSD following an agreement with refineries.
Earlier, HSD crack of USD41.89/ bbl was imposed for two months initially which was set to expire on Oct 20, 2026.
Domestic refineries contributed an estimated Rs22 billion towards the government’s efforts to contain HSD prices since August 20 by accepting a cap on the diesel crack spread and foregoing the benefit of higher international refining margins, according to industry calculations.
With domestic refineries producing roughly 5.1 million barrels of HSD since August 20, the cumulative impact is estimated at around USD76.8 million, equivalent to approximately Rs21.5 billion at the exchange rate used in the industry calculations, reportedly said.
Copyright Business Recorder, 2026
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