Higher fuel prices: Refineries report Rs54.8bn profit in FY26

Pakistan's listed refinery sector reported a combined profit of Rs54.8 billion in fiscal year 2025-26, a marked improvement from a loss of Rs10.5 billion in the previous fiscal year. The surge in earnings was driven by higher refining margins and increased sales volumes. The sector's revenue grew by 27 percent year-on-year, reaching Rs1.54 trillion from Rs1.22 trillion in the previous fiscal year.

Gross profit surged to Rs107.4 billion from Rs10.4 billion, with the gross profit margin improving to 7.0 percent from 0.9 percent. Net profit margin stood at 3.6 percent. Higher fuel prices, with ex-refinery prices of motor spirit (petrol) rising 17 percent year-on-year and high-speed diesel (HSD) prices increasing 19 percent, contributed to the revenue boost.

Refinery activity also rebounded during the year, with total petroleum product output increasing 13.4 percent to 11.2 million tonnes. Diesel production rose 17.2 percent, while petrol output increased 12.4 percent. The production mix shifted further towards diesel, accounting for 50.3 percent of total output compared to 48.6 percent in the previous year.

Total refinery sales rose 8.6 percent to 10.8 million tonnes, with diesel sales up 13.6 percent and petrol sales growing 11 percent. Cnergyico PK, Attock Refinery Limited, Pakistan Refinery Limited, and National Refinery Limited all returned to profitability, posting profits of Rs10.8 billion, Rs22.1 billion, Rs15.8 billion, and Rs6.2 billion, respectively.