Sinopec, the listed refining unit ofthe China Petroleum and Chemical Corp., hasn't really benefited fromrecent declines in global crude oil prices, because its refiningcosts still far exceed domestic oil product prices, company officialssaid on Thursday.

    China caps refined oil product prices at relatively low levels byworld standards.

    The officials said that although lower world prices would reduceimport costs, global crude prices were still about 130 U.S. dollarsper barrel, well above the break-even point of 80 U.S. dollars forAsia's largest oil refiner.

    Sinopec imports about 80 percent of the crude it refines.

    Earlier reports said Sinopec and another leading company,Petrochina, the two leading oil companies, recorded a combinedrefining loss of 5.71 billion yuan (about 827 million U.S. dollars)in the first half as soaring world crude prices raised theirproduction costs, which were up 47.9 percent year-on-year.

    China's oil companies have been losing money for each barrel ofimported oil they refined and sold domestically, since they can'tpass on higher costs under the government-set refined oil prices.

    The government raised the benchmark gasoline and diesel oil retailprices to 6,980 yuan and 6,520 yuan per tonne in June, up more than16 percent and 18 percent, respectively.

    The increases had helped reduce refining losses, said Sinopec. Itsaid last week that its first-half net profit would decline by morethan 50 percent because of the widening gap between the government-set prices of oil products and rocketing global crude prices.