PetroChina says to receive subsidy from April 1

HONG KONG, April 21 (Reuters) - PetroChina Co Ltd (0857.HK: Quote, Profile, Research, Stock Buzz) said the Ministry of Finance would provide a subsidy against losses due to refining and processing of imported crude oil on a monthly basis with effect from April 1.

The move is to ensure supply of crude oil and refined products.

PetroChina (601857.SS: Quote, Profile, Research, Stock Buzz) said in a statement on Sunday that refund of the full amount of value-added tax levied on imported refined products will be implemented in the second quarter of 2008.

It gave no further financial details.

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The Finance Ministry said earlier this month that it would refund the 17 percent tax on some of the fuel imported by Sinopec (600028.SS: Quote, Profile, Research, Stock Buzz)(0386.HK: Quote, Profile, Research, Stock Buzz)(SNP.N: Quote, Profile, Research, Stock Buzz) and PetroChina (PTR.N: Quote, Profile, Research, Stock Buzz), a move aimed at increasing domestic supplies without having to raise low state-set fuel prices. (US$1=HK$7.8) (Reporting by Donny Kwok; Editing by Keiron Henderson)