Pakistan oil refineries profit soared in the July-September quarter, with the three listed refineries reporting year-on-year growth of more than 1,000 per cent in the first quarter of fiscal year 2027. The windfall follows the Petroleum Division’s switch to daily fuel price updates on July 18, which transformed the sector’s economics.
Pakistan oil refineries profit: the numbers
Attock Refinery led the pack. Its net profit rose to Rs18.65 billion in the first quarter of FY27 from Rs1.45 billion a year earlier, an increase of 1,184 per cent.
| Refinery | Q1FY27 net profit | Q1FY26 net profit | Growth |
|---|---|---|---|
| Attock Refinery | Rs18.65 billion | Rs1.45 billion | 1,184% |
| National Refinery | Rs11.57 billion | Rs1.03 billion | 1,029% |
| Pakistan Refinery | Rs13.97 billion | Rs1.02 billion | 1,274% |
National Refinery reported a net profit of Rs11.57 billion, up from Rs1.03 billion in the same period last year. Pakistan Refinery’s net profit climbed to Rs13.97 billion from Rs1.02 billion.
Among the oil and gas companies, Pakistan Oilfields reported a net profit of Rs8.19 billion for the quarter, compared with Rs5.43 billion a year earlier, an increase of about 51 per cent. Attock Petroleum’s net profit rose roughly 74 per cent to Rs6.64 billion from Rs3.81 billion. Their earnings have different drivers from the refineries, so their increases should not be attributed entirely to refining margins.
How daily fuel prices created the windfall
Under the old system, fuel prices moved in fortnightly jumps, which exposed refineries to the risk of holding expensive inventory when prices fell. Daily price updates let refineries pass costs through faster and capture margin gains when international prices rise.
The earnings surge coincided with stronger international refining margins, inventory gains and higher product sales amid global supply uncertainty linked to the US-Iran and Russia-Ukraine conflicts. Brokerage estimates published ahead of the quarterly results put average gross refining margins at around $30 per barrel during the quarter.
Diesel was the strongest contributor, with an estimated spread of $55 to $57 per barrel, while petrol’s spread was estimated at around $25 per barrel. Attock Refinery was estimated to have achieved a gross refining margin of about $40 per barrel, alongside inventory gains of Rs1.5 billion. National Refinery’s estimated margin stood at $28.9 per barrel with projected inventory gains of Rs2.7 billion, while Pakistan Refinery’s estimated margin was $26 per barrel.
Higher international product prices also lift the value of fuel stocks bought cheaply. According to Arif Habib Limited, total refinery upliftment rose 37.3 per cent year-on-year to 3.192 million tonnes during the quarter, while industry capacity utilisation reached 59.5 per cent in September, up from 50.7 per cent a year earlier.
For consumers, the same system shows up at the pump: fortnightly revisions like the current petrol price of Rs398.96 per litre now respond to global markets faster than before.
Diesel margins: the next squeeze
The record quarter may be hard to repeat. On October 20, the government lowered the maximum HSD crack spread used in domestic diesel pricing to $38 per barrel from $41.89 per barrel. The revised ceiling followed an earlier arrangement that was due to expire around that date.
Topline Securities reported the change after it appeared in OGRA’s pricing data and it was confirmed with a refinery company. The lower cap could put pressure on refining margins in the following quarter, since diesel has been the biggest contributor to this quarter’s profits.
Analysts will also watch global refining margins, which have been volatile. Warnings of oil price spikes above $200 in a supply shock show how quickly the picture can change for both refineries and consumers.
Frequently asked questions
How much profit did Pakistan’s refineries make in Q1FY27?
Attock Refinery earned Rs18.65 billion (up 1,184%), National Refinery Rs11.57 billion (up 1,029%) and Pakistan Refinery Rs13.97 billion (up 1,274%) compared with the same quarter last year.
Why did refinery profits jump over 1,000%?
The Petroleum Division switched to daily fuel price updates on July 18, 2026, letting refineries pass costs through faster. Strong international refining margins, inventory gains and higher sales added to the windfall.
Will the profits continue?
Possibly not at this pace. The government cut the maximum HSD crack spread to $38 per barrel on October 20, which could squeeze diesel margins, the biggest profit contributor, next quarter.
What about Pakistan Oilfields and Attock Petroleum?
Pakistan Oilfields posted Rs8.19 billion (up 51%) and Attock Petroleum Rs6.64 billion (up 74%), but their earnings have different drivers from the refineries.
