(Oilnews.com, Sept 20, 2006) Oil refining companies in Gansu Povince suffered a total loss of RMB4.177b in 2005, and RMB2.759b in the first half of 2006, up 76.86 per cent on 2005, including loss of RMB2.278b incurred by Lanzhou Petrochemical.

The loss was mainly caused by three factors: Firstly, price contradiction between crude oils and finished oils; Secondly, huge cost in crude oil transportation and limited transportation capacity; Thirdly, high taxes levied on oil refining companies.
source:Oilnews.com
tag:China energy oil
Drawn from Chinese language press