Despite the recent slump in oil prices in the international
market, the price of refined oil is still lower in China than
elsewhere in the world.
Jiang Jiemin, general manager of the China National Petroleum
Corporation (CNPC), made the remark here Friday at a gathering of
leaders of giant state-owned enterprises.
In December 2006, the domestic prices of gasoline and diesel oil
were 5,200 yuan (667 U.S. dollars) per ton and 4,570 yuan per ton,
while in Singapore prices were 5,509 yuan and 5,352 yuan
respectively, Jiang said.
Government policy prevents the domestic price of refined oil
from fluctuating in line with the international market, said Wang
Tianpu, president of China Petroleum and Chemical Corporation
(Sinopec), China's largest oil processor.
Wang claimed that the huge profits of Chinese petroleum giants
in recent years were due to better internal management rather than
the rocketing oil price.
Operating costs at Sinopec had decreased by 10 billion yuan
annually, he said.
To ensure stable oil supplies in China, oil refineries suffered
huge losses from pegged prices of refined oil while the
international price soared, he said.
The CNPC hands over one third of its profit to the government as
tax, Jiang said.
(Xinhua News Agency January 6, 2007)