Due to their losses in the oil refining sector and their import
of hundreds of thousands tons of refined oil, PetroChina and
Sinopec are trying to report to the government their losses brought
about by the widening gap between the rising international oil
prices and the government-controlled oil prices.
Insiders said that this year's losses in oil refinery and
refined oil imports might gain these two oil giants more financial
subsidies from the government.
Those who oppose further subsidies argued that losses at oil
refineries are far lower than the past two years. Moreover,
the government already raised the refined oil prices this
A person inside Sinopec said that the profits could offset the
losses at oil refineries during the first three quarters of this
year. But the losses at oil refineries will be less that those of
last year thanks to the rising oil prices. But PetroChina and
Sinopec both have to share the losses accrued from importing
hundreds of thousands of tons of refined oil. Insiders claimed that
the government might reduce oil import duties to compensate these
oil refiners for their losses.
For more details, please read the full story in Chinese. (
(China.org.cn December 13, 2007)