Sinopec profit rises as fuel price controls eased

HONG KONG (AP) — State-owned oil company Sinopec says quarterly profit rose 20 percent following the relaxation of Chinese fuel price controls.

Beijing-based Sinopec said Tuesday that profit for the July-September period rose to 22 billion yuan ($3.6 billion) over a year earlier. Revenue rose 7 percent to 724.7 billion yuan.

China's major state-owned oil companies are benefiting from higher refining margins after authorities earlier this year loosened price controls. Domestic prices are now allowed to more closely follow international levels.

The controls were aimed at keeping politically sensitive fuel prices in check but sometimes left refiners with big losses.

Sinopec's refining division reported a 6.4 billion yuan profit for the first nine months of the year compared with a loss of 16.5 billion yuan the year before.