Sinopec Margins May Slump as Fuel Prices Trail Crude

China Petroleum & Chemical Corp., Asia’s biggest refiner, may extend a slump in profit from making gasoline and diesel as government price controls prevent the company from passing on higher crude-oil costs to customers.

Margins from processing oil fell 45 percent in the first six months as crude costs surged 84 percent, the company known as Sinopec said in its earnings statement yesterday. The stock declined the most in almost two months after second-quarter net income dropped 10 percent from a year earlier compared with a 40 percent increase in the preceding three months.