China's oil giant Sinopec will continuously increase the import of refined oil to prevent shortage of diesel oil and gasoline this summer, said Su Shulin, president of Sinopec.

   The compensation provided as import tax rebate was less than half of the company's losses caused by oil refining, noted Su.

   According to the Ministry of Finance, subsidies have been provided to compensate losses caused by imported crude oil processing since April 1, 2008. Besides, it has reimbursed VAT imposed on product oil imported by Sinopec and CNPC in the second quarter of this year.

   Su revealed that although the shortage of refined oil supply appeared again recently, Sinopec would ensure domestic oil supply and increase product oil import this summer.

   Sinopec is enduring great pressure under the present situation that the crude oil price is unreasonable and refined oil price is undervalued, but it will restore its profitability as long as the price returns to be rational, said Su.

   The crude oil output of Sinopec will increase by 920,000 tons in 2008, to 42 million tons.