When I was in China in May 2006 the price of gasoline was significantly cheaper than it is in the US. The price of premium gasoline was about $2.40 US for a four quart US gallon, almost one US dollar cheaper than home. It's said that the Chinese government keeps the price of fuel artificially low to stimulate their domestic economy.
It appears that the difference will narrow a bit since gasoline prices in China are set by the central government and that central government has decided on a price hike.
Which means that they're still selling fuel at a loss.