During the July-September quarter, known as 1QFY27, three listed oil refineries in Pakistan announced year-on-year profit jumps exceeding 1,000 percent, alongside earnings increases for Pakistan Oilfields and Attock Petroleum. The Petroleum Division shifted to daily fuel price updates on 18 July 2026, creating a windfall effect for the refinery sector.

Attock Refinery Limited saw its net profit grow to Rs. 18.65 billion for the first quarter of fiscal year 2027, climbing from Rs. 1.45 billion in the previous year, which marks an 1,184 percent rise. National Refinery Limited posted a net profit of Rs. 11.57 billion, compared to Rs. 1.03 billion during the same timeframe last year, showing growth of roughly 1,029 percent. Pakistan Refinery Limited watched its net profit reach Rs. 13.97 billion up from Rs. 1.02 billion, reflecting an approximate 1,274 percent increase.

Oil and Gas Companies Report Higher Profits

Pakistan Oilfields announced a net profit of Rs. 8.19 billion for the quarter, compared to Rs. 5.43 billion previously, marking a roughly 51 percent rise. Attock Petroleum experienced a net profit increase of about 74 percent, moving to Rs. 6.64 billion from Rs. 3.81 billion.

Higher Refining Margins Support Earnings

The jump in refinery earnings happened alongside stronger international refining margins, inventory gains, and higher product sales driven by global supply concerns tied to the US-Iran and Russia-Ukraine conflicts. Prior to the quarterly reports, brokerage estimates placed average gross refining margins near $30 per barrel through Q1FY27. Diesel performed best, showing an estimated spread of $55 to $57 per barrel, while petrol recorded an estimated spread near $25 per barrel. Attock Refinery reportedly reached an estimated gross refining margin near $40 per barrel, paired with Rs. 1.5 billion in inventory gains. National Refinery held an estimated margin of $28.9 per barrel alongside projected inventory gains of Rs. 2.7 billion, while Pakistan Refinery reached an estimated margin of $26 per barrel.

Cheap Fuel Stock Getting Expensive

Rising international product prices can drive up the value of fuel stocks bought at lower costs. Yet, the profits of oil producers and petroleum marketers stem from different factors than those of refineries, meaning their earnings growth should not be tied solely to refining margins. Arif Habib Limited reported that total refinery upliftment rose 37.3 percent year-on-year, reaching 3.192 million tonnes over the quarter. Industry capacity utilisation hit 59.5 percent in September, up from 50.7 percent during the prior year.

Govt Lowerset Diesel Margin Cap

On October 20, the government reduced the maximum HSD crack spread used in pricing domestic diesel to $38 per barrel down from $41.89 per barrel. This updated ceiling came after an earlier agreement expired around that date. Topline Securities initially shared the update after spotting it in OGRA pricing data and verifying it with a refinery. This new limit could create pressure on refining margins in the upcoming quarter.