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4 Refining Stocks to Buy as Gas Prices Top $4 a Gallon
U.S. motorists are once again feeling the pinch at the pump, with the average retail price of regular gasoline climbing above $4 per gallon. The U.S. Energy Information Administration (EIA) recently pegged the nationwide average at about $4.10 per gallon, underscoring the sharp rise in fuel costs.
While higher gasoline prices are a headwind for consumers, they can create a favorable backdrop for refiners when elevated product prices translate into stronger refining margins.
That makes the Zacks Oil and Gas–Refining and Marketing industry particularly noteworthy. The group currently ranks in the top 9% of more than 240 Zacks industries, with these four members holding spots on the coveted Zacks Rank #1 (Strong Buy) list.
Delek US Holdings –DK
Stock Price: $67
Delek US Holdings (DK - Free Report) ) stands to benefit through its refining operations and exposure to transportation fuels.
The company reported second-quarter 2026 adjusted EBITDA of $638.7 million, up 258% from $177.9 million in Q2 2205. Management highlighted its high distillate yield, access to advantaged crude, and improving refinery performance as positives in the current high-margin environment.
DK also has the highest annual dividend yield on the list at a respectable 1.5%.
Par Pacific Holdings –PARR
Stock Price: $82
Par Pacific Holdings (PARR - Free Report) ) is enjoying a significant lift from stronger refining margins across its geographically diverse refining system.
Second-quarter refining segment adjusted EBITDA surged 409% to $552 million from $108.4 million a year earlier, while adjusted gross margin jumped to $680.4 million from $231.8 million.
The company also completed most of its annual turnaround work, positioning its refineries to capitalize on the favorable margin backdrop as gasoline prices remain elevated.
It’s noteworthy that PARR has the cheapest forward P/E multiple on the list, trading at just 3X forward earnings.
PBF Energy –PBF
Stock Price: $75
PBF Energy ((PBF - Free Report) ) offers substantial exposure to improving gasoline and refined-product economics through its large U.S. refining network.
Second-quarter 2026 income from operations climbed to $1.27 billion from just $43 million a year earlier, while adjusted income from operations reached $1.05 billion versus a loss in the prior-year period.
PBF also captured strong refined-product margins from the return of its Martinez refinery to full operations in May, a 157,000 barrel per day (bpd) facility that produces gasoline, jet fuel, intermediates, and other petroleum products for California and the Bay Area in particular.
Valero Energy –VLO
Stock Price: $347
Valero Energy (VLO - Free Report) ) is perhaps the clearest large-cap beneficiary of robust transportation-fuel margins. Its refining segment generated $4.5 billion in Q2 operating income, up sharply from $1.3 billion a year ago, while refining throughput averaged roughly 3 million bpd.
Bottom Line
Gasoline prices above $4 per gallon are painful for consumers, but the environment can be very favorable for those investing in refiners that are able to capture strong margins on the fuels they produce.
With DK, PARR, PBF, and VLO carrying a Zacks Rank #1 (Strong Buy) and operating in one of the highest-ranked Zacks industries, these refining stocks warrant attention as elevated fuel prices continue to support downstream profitability and are leading to a sharp uptick in their EPS revisions.
View the Zacks #1 Rank List
Image: Bigstock
4 Refining Stocks to Buy as Gas Prices Top $4 a Gallon
U.S. motorists are once again feeling the pinch at the pump, with the average retail price of regular gasoline climbing above $4 per gallon. The U.S. Energy Information Administration (EIA) recently pegged the nationwide average at about $4.10 per gallon, underscoring the sharp rise in fuel costs.
While higher gasoline prices are a headwind for consumers, they can create a favorable backdrop for refiners when elevated product prices translate into stronger refining margins.
That makes the Zacks Oil and Gas–Refining and Marketing industry particularly noteworthy. The group currently ranks in the top 9% of more than 240 Zacks industries, with these four members holding spots on the coveted Zacks Rank #1 (Strong Buy) list.
Delek US Holdings – DK
Stock Price: $67
Delek US Holdings (DK - Free Report) ) stands to benefit through its refining operations and exposure to transportation fuels.
The company reported second-quarter 2026 adjusted EBITDA of $638.7 million, up 258% from $177.9 million in Q2 2205. Management highlighted its high distillate yield, access to advantaged crude, and improving refinery performance as positives in the current high-margin environment.
DK also has the highest annual dividend yield on the list at a respectable 1.5%.
Par Pacific Holdings – PARR
Stock Price: $82
Par Pacific Holdings (PARR - Free Report) ) is enjoying a significant lift from stronger refining margins across its geographically diverse refining system.
Second-quarter refining segment adjusted EBITDA surged 409% to $552 million from $108.4 million a year earlier, while adjusted gross margin jumped to $680.4 million from $231.8 million.
The company also completed most of its annual turnaround work, positioning its refineries to capitalize on the favorable margin backdrop as gasoline prices remain elevated.
It’s noteworthy that PARR has the cheapest forward P/E multiple on the list, trading at just 3X forward earnings.
PBF Energy – PBF
Stock Price: $75
PBF Energy ((PBF - Free Report) ) offers substantial exposure to improving gasoline and refined-product economics through its large U.S. refining network.
Second-quarter 2026 income from operations climbed to $1.27 billion from just $43 million a year earlier, while adjusted income from operations reached $1.05 billion versus a loss in the prior-year period.
PBF also captured strong refined-product margins from the return of its Martinez refinery to full operations in May, a 157,000 barrel per day (bpd) facility that produces gasoline, jet fuel, intermediates, and other petroleum products for California and the Bay Area in particular.
Valero Energy – VLO
Stock Price: $347
Valero Energy (VLO - Free Report) ) is perhaps the clearest large-cap beneficiary of robust transportation-fuel margins. Its refining segment generated $4.5 billion in Q2 operating income, up sharply from $1.3 billion a year ago, while refining throughput averaged roughly 3 million bpd.
Bottom Line
Gasoline prices above $4 per gallon are painful for consumers, but the environment can be very favorable for those investing in refiners that are able to capture strong margins on the fuels they produce.
With DK, PARR, PBF, and VLO carrying a Zacks Rank #1 (Strong Buy) and operating in one of the highest-ranked Zacks industries, these refining stocks warrant attention as elevated fuel prices continue to support downstream profitability and are leading to a sharp uptick in their EPS revisions.