National Development and Reform Commission announced in the [Notice on the Adjustment of Oil Product Prices] issued on May 23, 2006, that the current prices of oil products will be adjusted.

By the Notice, for Sinopec Corp., the intermediate retail price for 90# gasoline and 0# diesel oil both would be raised by RMB 500/ton respectively from May 24. The actual retail price for oil product can go up 8% compared with the intermediate retail price.