Pakistan Refineries Cash In on FY26 Fuel Price Surge: Attock Refinery Posts Near-Record Profit

A sharp rise in fuel prices, the same Middle East driven oil spike that unsettled the wider market, turned into a tailwind for Pakistan's refineries through FY26. When fuel prices jump, refineries earn wider margins and book inventory gains on stock they already hold, and the latest results show that effect coming through. Attock Refinery led with a near record profit, while smaller peers improved as well.

What the refinery results showed

Attock Refinery was the standout. For the third quarter of FY26 it reported net profit of about Rs11.3 billion, its second highest ever and a sharp jump from a year earlier. Net sales rose 18 percent to Rs87.7 billion, gross profit reached Rs17.6 billion, and gross margins hit a record 20.1 percent, the strongest in the company's history. That margin record is the clearest sign of how favourable the pricing environment was.

Pakistan Refinery turned the corner too, swinging back to profit in the first half of FY26 after a weaker stretch. National Refinery showed the demand side, with sales volumes rising sharply, up 78 percent to about 143,000 tonnes in April on stronger motor spirit, diesel and furnace oil offtake. Industry refinery throughput also rose into the spring, a sign that the sector was running harder.

Why fuel prices matter for refinery stocks

Refineries buy crude, process it, and sell fuels like petrol, diesel and furnace oil. Their profit depends on the gap between product prices and crude costs, the refining margin, plus inventory effects. When fuel prices rise quickly, two things help at once: margins widen, and the fuel already sitting in tanks gains value, producing one off inventory gains. That is why a fuel price surge can flatter refinery profits, and why the gains can fade once prices stabilise.

Which stocks, and why

Attock Refinery is the clearest positive, with a near record profit and record margins that show it captured the price surge fully. Pakistan Refinery is a solid positive on its swing back to profit, a real turnaround even if the scale is smaller. National Refinery gets a milder read, because the strong signal there is rising sales volumes rather than a confirmed profit figure, so the improvement is clear but less complete. All three sit on the right side of the Middle East energy shock, at least while prices stay elevated.

What to watch

The big caveat is that inventory gains reverse when prices fall. If oil and fuel prices ease as the Middle East situation settles, refinery margins would normalise and the one off boost would unwind. Watch the crude price, the refining margin, and any progress on the long discussed refinery upgrade policy, which affects longer term investment and profitability. Sustained demand for diesel and furnace oil would also help keep utilisation high.