SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of April, 2006
CHINA PETROLEUM & CHEMICAL CORPORATION
A6, Huixindong Street,
Chaoyang District Beijing, 100029
People's Republic of China
Tel: (8610) 6499-0060
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934. )
Yes No X
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(If "Yes" is marked, indicate below the file number assigned to registrant in
connection with Rule 12g3-2(b): 82-__________. )
N/A
This Form 6-K consists of:
The announcement on imposition of a special oil income levy by PRC government
authorities, made by China Petroleum & Chemical corporation (the "Registrant")
in English on April 3, 2006.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
China Petroleum & Chemical Corporation
By: /s/ Chen Ge
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Name: Chen Ge
Title: Secretary to the Board of Directors
Date: April 4, 2006
[GRAPHIC OMITTED]
(a joint stock limited company incorporated in the People's Republic of China
with limited liability)
(Stock Code: 0386)
Announcement
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The State Council and Ministry of Finance have imposed a special oil income
levy on income derived from the sale of locally produced crude oil which
exceeds US$40 per barrel.
This announcement is made pursuant to rule 13.09 of the Hong Kong Listing Rules
and the Shanghai Listing Rules.
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According to the "Decision of the State Council to impose a levy on Special Oil
Income" (GuoFa [2006] No. 13) and "Management Rules on the imposition of
Special Oil Income" (Cai Qi [2006] No. 72) issued by the State Council and
Ministry of Finance, with effect from 26 March 2006, the state will impose a
special oil income levy on any income derived from the sale by a oil
exploration and production company of locally produced crude oil at a price
which exceeds US$40 per barrel. The special oil income levy will have 5 levels
and will be calculated and charged according to the progressive ad valorem
rates on the excess amounts. The levy will be calculated on a monthly basis and
collected on a quarterly basis. The applicable level of the special oil income
levy will be determined based on the weighted average crude oil sale price of
the oil exploration and production company of a particular month. To enable
comparison with the international oil prices, the level of levy will be
determined based on US$ per barrel which starts at US$40 per barrel.
Details of the level of the levy are as follows:
Crude oil prices (US$ / barrel) Level of levy
40-45 (inclusive) 20%
45-50 (inclusive) 25%
50-55 (inclusive) 30%
55-60 (inclusive) 35%
Over 60 40%
The levy will be calculated based on the actual volume and the category of
crude oil sold. The exchange rate between US$ and Renminbi will be based on the
average of the daily middle-rate published by the People's Bank of China of a
particular month.
As the international oil prices, exchange rate of Renminbi and crude oil
production of the company fluctuates, the impact on the results of the company
as a result of the implementation of the levy cannot be ascertained at this
moment. However, the company's expenditure will increase and the results of the
company will be adversely affected if the international crude oil price is
above US$40 per barrel.
By Order of the Board
China Petroleum & Chemical Corporation
Chen Ge
Secretary to the Board of Directors
Beijing, PRC, 3 April 2006
As at the date of this announcement, the directors of Sinopec Corp. are Messrs.
Chen Tonghai, Wang Jiming, Mou Shuling, Zhang Jiaren, Cao Xianghon; the non-
executive directors of Sinopec Corp. are Liu Genyuan, Gao Jian and Fan Yifei;
the independent non-executive directors of Sinopec Corp. are Messrs. Chen
Qingtai, Ho Tsu Kwok Charles, Shi Wanpeng and Zhang Youcai; and the employee
representative director of Sinopec Corp. is Mr. Cao Yaifeng.