Shanghai Daily: Business - shanghaidaily.com
CHINA'S oil and petrochemicals industry is expected to record a strong 21-percent rise in profit this year, an industry organization said, while warning a fuel shortage could recur in 2008 if the pricing mechanism is not improved. Profits of the sector may rise to 530 billion yuan (US$71.8 billion), up from 434.5 billion yuan in 2006, spurred by high crude prices and rising demand, the China Petroleum and Chemical Industry Association said on its Website. The industry would contribute 5.99 percent to China's gross domestic product this year. Profit growth in the industry may slow to around 19 percent in 2008, CPCIA said. The rise was 17.9 percent in 2006. The association also expected fixed asset investment in the oil and petrochemicals industry could grow more than 20 percent next year. "China's economic growth is giving the sector an increasing attractive power to international capital, so spending in the industry would keep fast rising." However, CPCIA pointed