PetroChina and China Petroleum & Chemical Corp (Sinopec) said they expect to start receiving monthly government subsidies to compensate for government-mandated low energy prices, the Wall Street Journal reported. The subsidies, to begin later this month, would be the first time PetroChina receives subsidies to cover losses from refining. Faced with rising crude-oil costs, Sinopec said it expected first quarter profits, which take into account income from subsidies, to drop more than 50% from the previous year. The company will announce its first quarter profits on April 28. Beijing controls retail fuel prices and has kept them below international market value.
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