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Wednesday, 07 January, 2009, 21:10 GMT | more >>

CPC revenues given a boost



By Upstream staff 

Taiwan-based China Petroleum Corporation (CPC) has announced pre-tax earnings for the first six months of the year of $342.4 million, with the company denying that oil price fixing had contributed to the revenue jump.

CPC was reacting to reports that said the company had made huge profit windfalls at the expense of ordinary customers as a result of its fuel floating pricing mechanism.

“The criticism is unfair,” chairman Pan Wen-yen said, adding that the company’s revenue had come from overseas oil exploration and investments in petrochemicals and other industries, as well as sales of lubricant products.

Pan pointed out that as the floating pricing mechanism was decided by the Ministry of Economic Affairs, CPC was not in a position to change it.

Pan said the floating pricing mechanism, which allows the CPC to peg its fuel prices to international crude oil price fluctuations to better reflect its costs and market forces, should be maintained to encourage energy conservation.

Nevertheless, he said the mechanism can be adjusted in some ways to mitigate its adverse impact on certain services and maintain domestic price stability, Asia Pulse reported.


Thursday, 19 July, 2007, 02:20 GMT  | last updated: Thursday, 19 July, 2007, 02:20 GMT

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