The diesel price in Pakistan is now being worked out under a revised formula for high-speed diesel (HSD), the Ministry of Energy (Petroleum Division) said in a directive issued on October 19, 2026. The change sets a ceiling of US$38.00 per barrel and a floor of US$11.33 per barrel on the crack, which is the margin added to crude oil costs when diesel is refined. The government said the measure is meant to manage domestic fuel costs during the ongoing Iran-US war.
What the revised formula sets
The Federal Cabinet approved amendments to the HSD pricing mechanism that was first dated August 19, 2026. Under the change, the government will use a seven-working-day average crack to decide the maximum allowed crack, up to the US$38.00 ceiling. The US$11.33 figure acts as the lower limit for working out HSD prices.
The revised framework will stay in place for three months. The government may reconsider it earlier if the geopolitical situation improves and international prices fall quickly. All other parameters for pricing petroleum products remain as per existing practice, and the Ministry has formally asked the Oil and Gas Regulatory Authority (OGRA), the regulator that sets ex-depot prices, to implement the decisions immediately. The announcement does not state a new per-litre diesel rate, so the figure applied at pumps should be confirmed in OGRA's latest notification.
Why the change comes now
The directive follows a fuel crisis that began earlier in 2026, when the US-Israel war on Iran disrupted shipping. In late February, Iran blocked traffic through the Strait of Hormuz, a chokepoint that normally handled roughly 25% of the world's seaborne oil trade, and the United States responded with a naval blockade of Iranian ports.
The diesel price in Pakistan has been revised daily since July 17, 2026, when OGRA began adjusting ex-depot prices of petrol and diesel every 24 hours. The government introduced that shift to shield the local economy from sharp market swings. The new crack ceilings are presented as an additional layer of protection during this period.
Timeline: what has happened so far
- Late February 2026: Iran blocked shipping through the Strait of Hormuz.
- June 2026: A temporary ceasefire briefly restored market hope.
- July 8, 2026: The truce collapsed after renewed strikes on commercial vessels, and Iran closed the strait again.
- July 17, 2026: OGRA began revising ex-depot petrol and diesel prices every 24 hours.
- August 19, 2026: The previous HSD pricing mechanism was dated.
- October 19, 2026: The Ministry of Energy (Petroleum Division) issued the revised HSD pricing directive.
Aasan alfaaz mein
Hukumat ne high-speed diesel (HSD) ki qeemat ka hisaab lagane ka tareeqa badal diya hai. Ab crack ki upper limit US$38 aur lower limit US$11.33 per barrel rakhi gayi hai, aur yeh nizam teen mahine ke liye hai. Diesel ki asal per-litre qeemat OGRA ke agle elaan se hi pata chalegi. Aam shehri ke liye matlab yeh hai ke fuel ki qeemat ko kuch had mein rakhne ki koshish ki ja rahi hai, lekin pump par nayi rate zaroor check karein.
