Is PSX (Phillips 66) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PSX is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in PSX.

Phillips 66 is a major energy manufacturing and logistics company operating across four key segments: midstream, chemicals, refining, and marketing. The company transports crude oil, refines petroleum products, and manufactures essential chemicals for global markets. For Muslim investors using AAOIFI standards, Phillips 66 currently carries a Doubtful compliance status. While its core oil and gas operations are perfectly halal, the stock unfortunately fails the debt screening threshold, meaning it cannot be considered fully shariah-compliant at this time. The primary concern for Islamic portfolios is the company's debt-to-market capitalization ratio, which currently stands at 34.2%, just over the 33% limit. On a positive note, its interest-bearing cash and securities are extremely low at 1.7%, and interest income is a negligible 0.11% of total revenue. Because the debt failure is marginal, Muslim investors should monitor Phillips 66 closely in upcoming quarters. If the company reduces its debt load or its market capitalization increases sufficiently, it could quickly cross back into fully compliant territory. Phillips 66 operates in the Energy sector under the Oil & Gas Refining & Marketing industry and is headquartered in Houston, TX, US. The company is led by CEO Mark E. Lashier and employs approximately 13,200 people.

PSX was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. PSX passed 3 of these 4 screens.

PSX was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.