China Petroleum and Chemical Corp., the nation's biggest refiner, is losing about 3,000 yuan ($430) on each metric ton of oil products it makes because of near- record crude oil prices.

Government assistance to compensate the refiner for selling fuels at below cost covers less than half of its losses from turning crude oil into gasoline and diesel, Chairman Su Shulin said in Beijing today.

China controls fuel prices to limit their effect on inflation in the world's most-populous nation, reducing refiners' ability to pass on higher oil costs. The state has paid rebates on crude oil and oil-product import duties and gives Sinopec monthly subsidies toward rising raw-material costs. ... Read full article