The mainland government's coffers and the two state-controlled oil refiners will bear the brunt of soaring global oil prices as Beijing is using price controls to shield the economy from most of the impact, analysts say.
However, manufacturers will gradually feel some heat as higher crude oil prices will trickle down to some chemicals because petrochemical prices are not controlled.
'The impact from rising oil prices will be felt mainly by the refineries and the government, which has been handing out subsidies,' said Citigroup chief Asia economist Huang Yiping. 'The recent fuel price rise will have little impact on the consumer price index and consumption.'
In Hong Kong, where fuel prices are not controlled, oil prices also had little impact on inflation and consumption as fuel made up just 4 per cent of the consumer price index, said Citigroup economist Joe Lo.
Mainland transport firms and consumers have been shielded from higher fuel costs as Beijing has not raised retail prices for 17 months until last month.
The impact of a 9 to 10 per cent rise in petrol, diesel and jet fuel prices on November 1has not yet been reflected in the monthly industry data.
The nation's largest oil refiner, China Petroleum & Chemical Corp, would probably bleed several billion yuan this quarter as it would lose US$12 for each barrel of oil it processed, based on an average cost of US$80 a barrel and a break-even point of US$68, said Gordon Kwan, CLSA head of China energy research.