Oil Giants Urge Changes to Consumption Taxes on Fuels

China National Petroleum Corporation （CNPC） and China Petrochemical Corporation （Sinopec）, China＇s two largest companies, have apparently asked the government to temporarily lower or withdraw its levy on fuel oil consumption, according to the reports from the Economic Observer Weekly. A tax reduction would benefit both companies and consumers as the oil price continues to rise and living costs remain high. CNPC and Sinopec both reported significant growth in the first quarter of 2011. However, the profitability of their oil-refining businesses has declined.