HONG KONG -- China Petroleum & Chemical Corp., the largest Asian oil refiner by capacity, said China's government will give it a one-time subsidy of $1.17 billion to compensate for domestic oil-product prices that are kept below international levels by government controls.

The size of the government aid for China Petroleum & Chemical, or Sinopec, surprised some analysts and underscores Beijing's difficulties in managing domestic prices for gasoline and related products amid surging global oil prices during the past year. Beijing regulates the domestic prices of refined oil products to shield China's relatively poor rural sector from sharp rises in international prices. However, the policy has led to slim margins - and even losses - for many Chinese refiners.

The payment to Sinopec, which lists shares in New York, Hong Kong and London, will comprise the bulk of a slightly larger payment of 10 billion yuan ($1.24 billion) to its parent company, China Petrochemical Corp. Sinopec and its listed subsidiaries will receive 9.42 billion yuan, or 94 percent of the subsidy, which will be reflected in their 2005 earnings reports. The parent's unlisted assets will receive the balance. The payment will come from the Ministry of Finance, Sinopec said.

China has been a net importer of crude oil since 1993, as domestic supply hasn't been able to keep pace with the rapidly expanding economy's increasing demand for energy.

Sinopec's U.S.-traded shares rose 3.4 percent, or $1.25, to close at $38.23 Wednesday on the New York Stock Exchange.