Sinopec gets 2.51 bln yuan VAT rebate on Q2 fuel imports
BEIJING (XFN-ASIA) - Sinopec Group, parent of China Petroleum & Chemical Corp (Sinopec), received 2.51 bln yuan in value-added tax (VAT) rebate on gasoline and diesel imports during the second quarter, Xinhua news agency reported, citing the finance ministry.
The Chinese government agreed to refund 75 pct of the 17 pct VAT levied on monthly crude oil and fuel imports during the second quarter to help offset refiners' losses due to price controls on retail fuel prices.
Under mounting pressure from rising crude prices, the government unveiled a surprise 16 to 18 pct hike in fuel prices on June 20.
Taking into account all the subsidies and the fuel price hike, Sinopec is still losing 900 yuan for every ton of oil it refines, Xinhua quoted a company source as saying.
A Sinopec official told XFN-Asia last Thursday that the company is yet to hear from the central government on an extension of the VAT rebate into the third quarter.
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