Domestic private refineries reap benefits of oil sector reforms

The country's private oil refineries achieved an average 20 percent increase in profits last year, despite the 35 percent plunge in global oil prices, according to a leading industry analyst.

Li Yan, from Shandong Longzhong Information Technology Co, said much of the success was down to a decline in their own refining costs, made possible by the glut in global supply.

"Compared with that drop in costs, domestic wholesale prices for gasoline and diesel didn't fall as much, which also contributed to the profit rise, especially in Shandong province where up to 70 percent of the country's oil refining capacities are located," he said.