Govt reduces cap on HSD crack spread

Summary

• KARACHI/ISLAMABAD: The government has reduced the cap on the high-speed diesel (HSD) crack spread to $38 per barrel from $41.89, according to the Oil and Gas Regulatory Authority’s (Ogra) pricing sheet.
• The revised cap is below the average international diesel crack spread of $45.40 per barrel recorded so far in October.
• The government had proposed lowering the cap to $30 per barrel, but refineries sought a $38 cap, which was ultimately agreed, the participant said.

AI Generated Summary

KARACHI/ISLAMABAD: The government has reduced the cap on the high-speed diesel (HSD) crack spread to $38 per barrel from $41.89, according to the Oil and Gas Regulatory Authority’s (Ogra) pricing sheet.

The revised cap is below the average international diesel crack spread of $45.40 per barrel recorded so far in October. The arrangement will remain in place for three months.

The government first introduced an HSD crack spread cap in April 2026 but removed it on May 22 after international refining margins returned to more normal levels. It reinstated the cap on August 20 at $41.89 per barrel for two months, with the previous arrangement due to expire around October 19 or 20.