The news source reported that Sinopec imports 80% of the oil that it refines into assorted petroleum products. The Chinese oil company is reportedly unable to pass on the increased price of oil to its customers due to a government regulation that controls fuel prices.
Sinopec has been lobbying the Chinese government to ease the price control mechanism even further after a 10% rise in petrol and diesel prices was allowed for in 2007, according to the Financial Times.
The oil company is reportedly focusing on cutting operational costs and prospecting for new reserves to mitigate the increased cost of crude imports.
Sinopec is also seeking to improve its product offerings by focusing on high-value products. It is also planning to increase the prices of refined products that do not come under the government’s regulatory purview, according to the news source.
