New fuel pricing policy boosts Sinopec's net profits

China’s new domestic fuel pricing policy has helped boost the net profits of China Petroleum Chemical Corp. (Sinopec) by 230% to 49.71 billion yuan (US$7.28 billion) over the first nine months of this year, according to a report released by the company on October 30. The new regime is targeted at better protecting Chinese refiners’ profit margin by tracking domestic retail fuel prices closer to international crude oil prices. Under the new fuel pricing regime, the National Development and Reform Commission (NDRC), China’s state economic planner, says it will adjust domestic fuel prices every 22 working days in line according to movement in the global market. (October 30, 2009)