SINOPEC Shanghai Petrochemical Co, China's largest ethylene maker, posted a loss in the first quarter because government controls on fuel prevented the refiner from raising prices as crude costs soared.

The firm made a loss of 200 million yuan (US$29 million), or 0.028 yuan a share, versus a profit of 1.07 million yuan, or 0.148 yuan a share, a year earlier, it said in a statement to the Hong Kong Stock Exchange yesterday.

China controls fuel prices to limit their impact on inflation, which was close to the quickest pace in 11 years last month. That curbs China Petroleum & Chemical Corp, PetroChina Co and their units from passing on rising material costs to consumers, Bloomberg News said.

Shanghai Petrochemical fell 2.7 percent to HK$3.29 (42 US cents) in Hong Kong last Friday.