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Commodities

Sinopec planning subsidy for oil product exports

China Petroleum & Chemical Corp, or Sinopec, will place a US$19 per ton subsidy on refined oil products from its refineries this month to encourage oil product exports, state media reported. The subsidy will be paid by wholly-owned unit China International United Petroleum & Chemicals Co, and is the first time Sinopec has used an internal subsidy to boost exports as stockpiles mount, an analyst said, citing representatives from  Sinopec refineries. Official figures state petroleum, diesel and kerosene inventories at Sinopec and Petro China, the country’s two biggest refineries, increased 3% month-on-month in January against a 6% drop in sales.

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