Pakistan’s listed refinery sector posted a combined profit of Rs54.8 billion in fiscal year 2025-26 after recording a loss of Rs10.5 billion the year before. The turnaround reflects stronger refining margins, higher fuel prices and increased output across key products, according to financial reports.
The industry’s revenue rose to Rs1.54 trillion, up from Rs1.22 trillion in FY25, a growth of 27%. Gross profit climbed to Rs107.4 billion, a jump of 930% from the previous year’s Rs10.4 billion. Gross profit margins improved to 7.0% from 0.9%, while net profit margins reached 3.6%. Higher ex-refinery prices contributed to the gains, with petrol prices up 17% and diesel prices up 19% year-over-year.
Refinery output expanded by 13.4% to 11.2 million tonnes, lifting capacity utilisation to 55% from 48%. Diesel production led the rise, increasing 17.2%, while petrol output grew 12.4%. Diesel now accounts for 50.3% of total output, up from 48.6% in FY25. Furnace oil’s share fell to 21.1% from 23.1%, and jet fuel’s contribution rose slightly to 4.9%.
Sales volumes also increased, with total petroleum product sales up 8.6% to 10.8 million tonnes. Diesel sales rose 13.6%, and petrol sales grew 11%. Furnace oil sales declined 7.8%, reflecting weaker demand from the power sector.
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Wider refining spreads were the primary driver of the recovery. The diesel margin against Arab Light crude widened to $29 per barrel from $9.7 per barrel the prior year. Petrol margins rose to $7.4 per barrel from $2.9 per barrel. Supply disruptions linked to the US-Iran conflict in March 2026 contributed to the stronger margins, according to Arif Habib Limited.
Refineries Post Record Profits Despite Challenges
Individual plants saw notable improvements. Attock Refinery Limited (ARL) posted a profit of Rs22.1 billion, an increase of 85%, and declared a cash dividend of Rs17.50 per share. Pakistan Refinery Limited (PRL) turned a loss of Rs4.7 billion into a profit of Rs15.8 billion, despite a 1.7% drop in sales. Cnergyico PK returned to profitability with a gain of Rs10.8 billion, up from a loss of Rs2.9 billion, while its sales rose 12.3%. National Refinery Limited (NRL) earned Rs6.2 billion, though policy and accounting charges reduced earnings by about Rs13.5 billion.
Profitability weakened in the final quarter. Gross profit fell to Rs8.0 billion in Q4FY26 from Rs72.2 billion** in the prior quarter, even as revenue rose to Rs530.8 billion. The decline suggests seasonal or operational challenges in the last months of the fiscal year.
Massive Upgrades to Reshape Pakistan’s Fuel Future
Looking ahead, four of Pakistan’s five major refineries—ARL, NRL, PRL and Cnergyico Petroleum Pakistan Limited—have signed $5 billion upgrade deals under the Brownfield Petroleum Refining Policy 2026. The agreements aim to boost domestic petrol production by 72%, high-speed diesel output by 39%, and cut furnace oil production by 63%. The upgrades target modernising ageing infrastructure, improving fuel quality and reducing reliance on imported petroleum products.
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