Is Phillips 66 PSX stock halal to invest in?

No, as of August 2026, Phillips 66 stock (PSX) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Phillips 66 currently does not meet the threshold for the interest-bearing debt screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Phillips 66 and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Phillips 66 PSX reviewed for Shariah compliance?

Tabadulat reviews Phillips 66 PSX for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Phillips 66 reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Phillips 66 PSX pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Phillips 66 stock (PSX) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Phillips 66's income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Phillips 66 PSX pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Phillips 66 stock (PSX) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Phillips 66's interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Phillips 66 PSX pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Phillips 66 stock (PSX) does not pass the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. Phillips 66's interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Phillips 66 PSX stock?

Phillips 66 (PSX) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Phillips 66 returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Phillips 66 PSX pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Phillips 66 stock (PSX) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Phillips 66 has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Phillips 66

NYSE

Shariah-Compliant

Not Shariah

PSX

About

Phillips 66

PSX

Phillips 66 is a renowned American multinational energy company involved in refining, transporting, and marketing petroleum products. Engaging primarily as a downstream sector entity, Phillips 66 operates an extensive network of refineries, pipelines, and retail stations across the globe. The company's main function is to refine crude oil into marketable fuels such as gasoline, diesel, and jet fuel, as well as petrochemical products that serve as building blocks for various industrial applications. Additionally, Phillips 66 is known for its logistics and midstream operations, which include pipelines and trucking services that facilitate efficient energy distribution. The company plays a critical role in the energy sector, impacting industries ranging from transportation to manufacturing. By maintaining a strategic focus on safety, environmental stewardship, and operational excellence, Phillips 66 contributes significantly to the global energy supply chain. Established in 1875 and headquartered in Houston, Texas, Phillips 66 continues to provide essential energy solutions while adapting to evolving market dynamics and sustainability demands.

Sector:

Energy

Industry:

Oil & Gas Refining & Marketing

Employees:

13200

Website:

https://www.phillips66.com

PSX

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Phillips 66

About

Phillips 66

PSX

Frequently asked questions

Is Phillips 66 PSX stock halal to invest in?

How often is Phillips 66 PSX reviewed for Shariah compliance?

Does Phillips 66 PSX pass the AAOIFI Non Permissible Income criteria?

Does Phillips 66 PSX pass the AAOIFI Interest Bearing Investments criteria?

Does Phillips 66 PSX pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Phillips 66 PSX stock?

Does Phillips 66 PSX pass the AAOIFI Preference Share screen?

Can I buy Phillips 66 (PSX) stock on Tabadulat?

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