Pakistan’s listed oil refineries reported a sharp surge in earnings during the first quarter of fiscal year 2027, with profit growth exceeding 1,000% year-on-year at several major companies.
The July–September quarter saw stronger refining margins, inventory gains and higher product sales, helping Attock Refinery, National Refinery and Pakistan Refinery post significantly higher profits compared with the same period last year.
Attock Refinery Profit Jumps to Rs18.65 Billion
Attock Refinery Limited reported net profit of:
Rs18.65 billion
for the quarter ended September 30, 2026.
That compares with Rs1.45 billion in the same period last year, representing an increase of approximately 1,184%.
Pakistan Stock Exchange data also shows Attock Refinery’s unconsolidated earnings per share at Rs174.89 for the quarter.
National Refinery Profit Rises Above Rs11 Billion
National Refinery Limited reported net profit of:
Rs11.57 billion
compared with around Rs1.03 billion in the corresponding quarter last year.
That represents growth of roughly 1,029% year-on-year.
Pakistan Refinery Profit Reaches Nearly Rs14 Billion
Pakistan Refinery Limited posted net profit of:
Rs13.97 billion
up from approximately Rs1.02 billion a year earlier.
Its profit growth came to roughly 1,274%.
What Drove the Profit Surge?
The profit increase was supported by several factors rather than one single policy decision.
Brokerage estimates placed average gross refining margins at around $30 per barrel during the quarter.
Diesel was the strongest contributor, with estimated spreads of around $55–$57 per barrel, while petrol spreads were estimated near $25 per barrel.
Refineries also benefited from:
- stronger international product prices;
- inventory gains;
- higher product sales;
- improved refinery upliftment; and
- global supply uncertainty linked to geopolitical tensions.
Arif Habib Limited estimated total refinery upliftment increased 37.3% year-on-year to 3.192 million tonnes, while industry capacity utilisation improved to 59.5% in September, compared with 50.7% a year earlier.
Did Daily Fuel Pricing Cause the Higher Profits?
The Petroleum Division moved to daily fuel price updates on July 18, 2026, and the shift coincided with the strong quarter for refineries.
However, it would be too simplistic to say that the pricing change alone caused the earnings surge.
Higher international refining margins, inventory revaluation gains and stronger product demand also played major roles.
In other words, the daily pricing system may have reduced timing mismatches in fuel pricing, but broader market conditions were equally important to refinery profitability.
Refining Margins May Come Under Pressure
The strong first-quarter performance may not necessarily continue at the same pace.
The government reduced the maximum high-speed diesel crack spread used in domestic pricing to:
$38 per barrel
from:
$41.89 per barrel
on October 20.
This could put some pressure on refinery margins in the current quarter if international spreads also soften.
Earlier in September, refinery margins had already fallen sharply from around $33 per barrel in August to about $11 per barrel, showing how quickly industry profitability can change with crude costs and product spreads.
Other Energy Companies Also Report Higher Earnings
Pakistan Oilfields reported quarterly net profit of approximately:
Rs8.19 billion
compared with Rs5.43 billion last year, an increase of around 51%.
Attock Petroleum reported profit of:
Rs6.64 billion
up around 74% from Rs3.81 billion.
Their earnings, however, are driven by different business models and should not be attributed entirely to refining margins.
Why This Matters for Pakistan’s Refinery Sector
Pakistan’s refineries are preparing large investments under the Brownfield Refining Policy to upgrade plants, improve petrol and diesel production and reduce furnace oil output.
Industry officials have previously argued that periods of stronger profitability can help refineries build the equity needed for those modernization projects.
At the same time, policymakers face the challenge of balancing refinery profitability with the impact of fuel pricing on consumers.
Pakistan’s listed refineries delivered an exceptional Q1FY27 earnings season, with Attock Refinery, National Refinery and Pakistan Refinery all posting profit growth above 1,000%.
The surge was supported by strong refining margins, inventory gains and higher product sales, while the shift to daily fuel-price updates also formed part of the sector’s changing pricing environment.
The key question now is whether margins remain strong after the government’s recent reduction in the diesel crack-spread cap.
