Sinopec will continue to give rewards to subsidiary refineries producing extra gasoline and gasoil in August, refinery sources said.
It will be the six consecutive month for Sinopec to implement the measure, C1's data showed.
The ex-refinery price of 90-Ron gasoline exceeding the production target will be Yuan 9,025/mt on a post-tax basis, up by Yuan 545/mt from that of planned gasoline; the price of excessive zero-pour-point gasoil will be Yuan 8,474/mt, up by Yuan 844/mt, according to the sources.
The rewards were up by Yuan 94/mt and Yuan 100/mt from July, respectively.
However, the policy may be in vain to boost gasoil production, because it is more profitable to produce jet, the sources remarked.
Sinopec's ex-refinery price of jet is Yuan 7,668/mt in August, Yuan 973/mt higher than the price of gasoil within the production plan and Yuan 252/mt higher than that of out-of-plan gasoil, the sources added.
The jet output ratios of major refineries still have upside room of 1-1.5%, C1 reported earlier.
Sinopec may carry on the rewarding policy in September, because it will shut a total of 25-mil-mt/yr topping capacity for turnaround at the end of August, the sources expected.
