Pakistan refining margins surge to $28.8 per barrel in August

Pakistan's refineries earned an average margin of $28.8 per barrel in August 2026, according to industry data reported by Profit, up sharply from $5.4 a year earlier. This marks the second straight month that margins have stayed above $20 per barrel. Profit said analysts linked the year-on-year rise mainly to pricier petroleum products, as the US-Iran war pushed global energy prices higher.

Margins did slip from $36.7 per barrel in July, however, because the government capped high-speed diesel cracks at $41.89 per barrel from August 20, affecting the last ten days of the month. The gains came even though Dubai crude, the reference grade for the margin calculation, averaged about $88 per barrel in August compared with $73 a year earlier. Reported margins are struck before duty differentials and inventory movements.

Refinery representatives, though, argued that higher margins have not produced meaningful earnings, with net profit around 1% of revenue. A senior executive added that September crude import premiums had jumped to $20 per barrel from a $7 to $12 band, squeezing margins further. Analysts expect the durability of these margins to hinge on international oil prices, product spreads, shipping costs and state pricing decisions.