Pakistan Refineries’ Profit Margins Jump More Than Fivefold in a Year
Gross refining margins in Pakistan averaged $28.8 per barrel in August 2026, sharply higher than the $5.4 per barrel recorded … Read More The post Pakistan Refineries’ Profit Margins Jump More Than Fivefold in a Year appeared first on ProPakistani .
Pakistan's refining sector witnessed a significant boost in profit margins, with figures more than quintupling in a single year, according to industry data. The gross refining margins (GRMs) averaged $28.8 per barrel in August 2026, a stark contrast to the $5.4 per barrel recorded in August 2025. This substantial increase, despite a slight dip in July, was primarily attributed to higher petroleum product prices driven by geopolitical tensions, notably the US-Iran conflict.
Dubai crude, the benchmark for GRM calculations, surged from $73 per barrel in 2025 to $88 per barrel in 2026. Policy interventions, such as the government's cap on high-speed diesel prices at $41.89 per barrel effective August 20, also played a role in the fluctuation of margins for the month. Despite these measures, the refining margins remained above $20 per barrel for two consecutive months, signaling a robust upward trend.
Experts attribute this improvement to the sector's ongoing transformation, with the government aiming to enhance refinery economics, decrease reliance on imported petroleum, and attract investment in upgrades. While the stronger margins offer some relief to local refineries, their long-term sustainability remains contingent on global crude prices, petroleum product cracks, freight rates, and government pricing policies.
However, industry representatives cautioned that while higher GRMs are encouraging, they do not necessarily translate into a major surge in refinery profitability.
Written by urgent.news from ProPakistani's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
