Oil price reform lifts Sinopec profits

China Petroleum and Chemical Corporation (Sinopec) (SNP.NYSE, 0386.HKG, 600028.SHA) saw second quarter earnings rise by 22% on higher refining margins, Reuters reported. As China introduced measures to let domestic fuel prices follow the international market more closely, net profit at Sinopec rose to US$2.22 billion (RMB13.58 billion) in April-June from US$1.81 billion a year earlier, according to Reuters calculations. China implemented a more flexible fuel pricing mechanism in March to allow higher prices in a bid to tackle soaraway fuel consumption and stave off potential shortages.