Pakistan’s refineries maintained strong profitability in August 2026, with the average gross refining margin (GRM) standing at $28.8 per barrel, according to Topline Research.
The margin was significantly higher than the $5.4 per barrel recorded in August 2025, although it declined from $36.7 per barrel in July 2026.
Topline Research published the figures in its Refinery Monitor on September 1, calculating margins before accounting for duty differences and inventory movements.
The August figure marked the second consecutive month in which Pakistan’s refineries recorded an average GRM above $20 per barrel.
According to Topline Research, the sharp year-on-year improvement was mainly driven by stronger petroleum product prices. The research firm linked the increase in product prices to the US-Iran war.
However, refinery margins declined on a monthly basis following a government decision related to high-speed diesel (HSD) pricing.
The government capped HSD cracks at $41.89 per barrel effective August 20. Topline Research incorporated the cap into its calculations for the final 10 days of August.
The research firm also factored in supplier premiums and freight costs above the crack spread while calculating refinery margins.
Meanwhile, Dubai crude averaged $88 per barrel in August 2026, compared with $73 per barrel in August 2025.
Despite the significant increase in crude prices, Pakistani refineries continued to record strong margins because petroleum product prices improved at a faster pace.
The latest figures indicate that refinery profitability remains elevated, although government pricing policies and global geopolitical developments could continue to influence margins in the coming months.
