Sinopec offers incentives for refineries to surpass oil production quota

China Petroleum & Chemical Corp. (Sinopec) announced that it will reward domestic refineries that are able to surpass current oil production quota. This program will help stabilize oil supply domestically. According to an industry source, the factory price for gasoline and diesel produced above the April quota will be awarded a premium price. However, it is unlikely that many refineries will be able to reach higher production rates due to the already existing high utilization rates at Chinese refineries. (April 14, 2011)