China approves strategic merger between Sinopec and Aviation Fuel Group

The State Council approved on Thursday a reorganization between China Petroleum and Chemical Corp (Sinopec), the country's largest refiner, and China National Aviation Fuel Group, Asia's largest aviation transportation service provider.

Industry insiders view this reform as a strategic move to restructure and consolidate central State-owned enterprises.

It is seen as a proactive step to navigate international competition and the green transition, with the potential to lower aviation fuel costs, sharpen the competitiveness of China's jet fuel industry, and accelerate the aviation sector's shift toward low-carbon development.