Despite subsidy, Sinopec continues to suffer refining loss

Asia’s top oil refiner China Petroleum and Chemical Corporation (Sinopec) is still losing money in oil refining, though it is refunded by the Chinese government with part of the value-added tariffs on imported crude oil, said its chairman Su Shulin on May 26. The government started the preferential tax policy in April but the rebate could barely cover 50% of the company’s total loss in oil refining, said Su, without disclosing the exact loss. Moreover, the government started fully refunding the 17% value-added tariffs on imported diesel oil and gasoline last December and then extended the policy to this June. Sinopec said it has received 7.1 billion yuan (US$1.03 billion) in subsidies for crude oil imports from the Chinese government in April. (May 28, 2008)