Sinopec continues to give award to subsidiary petrochemical companies producing more oil products than schedules in October in a bid to guarantee the domestic supply, a company source said.
It is the eight straight months that such a policy was implemented, C1's record showed.
The award is Yuan 440/mt for gasoline and Yuan 710/mt for gasoil, according to the source.
The ex-refinery prices of gasoline and gasoil above October production targets are Yuan 8,620/mt and Yuan 8,040/mt, respectively, versus Yuan 8,180/mt and Yuan 7,330/mt for that within the targets.
Sinopec has extensive maintenance while limited newly-built refining facilities this year, the source said, adding most of its underlying petrochemical companies have been suffering from steeply negative refining margins.
Higher sales margins of jet will still affect gasoil production in October, the source also said.
Ex-refinery price of jet from refineries underlying Sinopec is Yuan 7,444/mt in October, Yuan 1,038/mt higher than post-tax price of gasoil within the plan and Yuan 431/mt higher than additional gasoil.
China levies no consumption tax on jet while the tax on gasoil is Yuan 0.8/liter.
Sinopec will continue the encouraging policy throughout the fourth quarter, the source said.
