China will give China Petroleum & Chemical, or Sinopec, a one-time state subsidy of US$1.17 billion to compensate for losses incurred due to government caps on domestic oil-product prices, the Wall Street Journal reported. The payment will comprise 94% of a US$1.24 billion payment to Sinopec parent company China Petrochemical. Regulation of prices shields China's relatively poor rural sector from sharp rises in international prices but leads to slim margins or losses for many Chinese refiners.
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