Chinese refiner gets US$1bn in imported oil subsidy
Updated: 2008-05-27 11:00
China Petroleum and Chemical Corp. (CPCC), the country's largest oil refiner, said it received 7.1 billion yuan (US$1 billion) in oil subsidies in April.
Board chairman Su Shulin released the information at the annual shareholder's meeting on Monday.
This followed the 5 billion yuan in government subsidies in 2006, 4.9 billion yuan in 2007, and 7.4 billion yuan in the first quarter this year.
The move was part of the government's efforts to compensate the country's big oil refiners in oil refining division and to mobilize their production enthusiasm.
In the first quarter this year, the company processed 41.89 million tons of crude oil, an increase of 9.57 percent, said its first-quarter report. However, its refining business saw 20.64 billion yuan in losses during the same period, compared with a profit of 4.38 billion yuan a year earlier.
Chinese oil refiners have suffered losses as they have been unable to pass on surging international crude oil prices to customers because of the government's control over domestic prices of gasoline and other refined oil products.
Sinopec, the listing company of the CPCC, saw its shares opened at 12.40 yuan in the morning session, down more than 3 percent from the previous close.
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