2. Both PetroChina and Sinopec have their own oil fields in China, with a certain amount of crude oil output every month, but PetroChina's crude oil output is far more than Sinopec's. So Sinopec imports a lot of crude oil every month.
Domestic PetroChina and Sinopec import crude oil from abroad every month, all of which are purchased from the international market. They can buy spot from traders and oil-producing countries, or they can buy futures from new york Petroleum Exchange or London Petroleum Exchange.
The settlement price of imported crude oil is based on the benchmark price of WTI, plus some expenses, such as discounts. Once the international oil price rises, the cost for Sinopec to import crude oil will increase.
3. Finally, talk about the price of gasoline and diesel in China. At present, the price of gasoline and diesel is still controlled by the state, and the price has not been liberalized. The state has stipulated the quasi-price of gasoline and diesel, and the fluctuation of the quasi-price by 8% is the highest price and the lowest price.
Originally, if the oil price in China is implemented normally according to the mechanism and the international crude oil reaches a certain increase, it is necessary to raise the domestic gasoline and diesel prices. But, after all, it has China characteristics. Oil prices have risen too fast, involving too many aspects. The state is cautious when raising prices. Even when the international crude oil rises sharply, it does not rise, which leads to deepening contradictions. As the saying goes, one step can't keep up, and one step can't keep up.
Therefore, the current domestic gasoline price is definitely lower than the international market, but the policy determines the price. For the production enterprises that rely on imported crude oil like Sinopec, the import cost of crude oil has risen sharply, but the product price is still at a low level, which leads to losses for refining enterprises. In recent years, the state has given Sinopec a certain loss subsidy.