Sinopec given US$1b state subsidy

China Petroleum & Chemical Corp (Sinopec) was paid a record US$1 billion in state subsidies for oil imports last month, the South China Morning Post reported. While Beijing controls the retail price of fuel sold by energy companies, a surge in global crude prices to almost US$130 per barrel has forced the government to help these firms offset the cost of buying oil on the international market. Analysts told the paper that the government needs to ensure adequate oil supplies in the run up to the Olympic Games this summer, as demand is expected to rise due to increased use of air-conditioners. Sinopec chairman Su Shulin said that the subsidies would not cover all the losses faced by the company.