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CNPC and Sinopec Received Large Government Subsidies in 2012

According to Xinhua, the top two State-owned petroleum companies, China National Petroleum Corporation (CNPC) and China Petroleum & Chemical Corporation (Sinopec), received a total of 12.2 billion yuan (US$1.98 billion) in government subsidies in 2012. Sinopec alone received 9.4 billion yuan (US$1.53 billion). The Chinese government subsidized CNPC and Sinopec 1 billion and 462 million respectively in 2009, 1.599 billion and 1.0 billion in 2010, and 6.734 billion and close to 1.5 billion in 2011.

In 2008, due to the high cost of crude oil and the low prices paid for finished oil products, both companies incurred astronomical losses. For that year, CNPC and Sinopec received 15.7 billion yuan (US$2.57 billion) and 50.3 billion yuan (US$8.7 billion) in government subsidies, respectively.

Source: Xinhua, May 2, 2013