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Oil refiners to get gov't subsidies for losses

(Xinhua)
Updated: 2008-04-21 13:46

皇冠体育app Petroleum and Chemical Corp (Sinopec) and Petro皇冠体育app Co, the country's two leading oil refiners, will receive "appropriate" monthly subsidies for losses retroactive to April 1, the companies said in separate statements.

Neither statement provided further details.

Chinese oil refiners have been running losses as world crude oil prices surge but domestic refined product prices remain relatively low. Refiners in 皇冠体育app can't pass on the additional raw material costs to consumers.

Also, the government will refund the value-added tax levied on some of Petro皇冠体育app and Sinopec's imported oil products in the second quarter, said the Ministry of Commerce.

Sinopec, the country's largest oil refiner, has said that its net profit probably fell more than 50 percent year-on-year in the first quarter because of increasing costs.