Wednesday, March 29, 2006

China imposes windfall tax on oil

China has imposed a windfall profits tax on domestic oil producers. This occurred alongside a government imposed price hike in oil products. Price increases of 3-5 percent for diesel and gasoline at the pump were announced over the weekend.

According to one report, refiner Sinopec will fare best among the nation's major oil companies. China National Offshore Oil Corp (CNOOC) is expected to be hurt the most, because of its position as a top offshore oil producer. PetroChina pulls through, despite refining losses.

Price charts for PetroChina, CNOOC, and Sinopec (source: Bigcharts).