PetroChina H1 refining profit at record high on fuel reform

HONG KONG, July 16 (Reuters) - The refining operations of top Asian oil and gas producer PetroChina (601857.SS)(0857.HK)(PTR.N) swung to a record profit, from year-earlier loss, boosted by domestic fuel price increases, its parent CNPC said late on Wednesday.

CNPC, China's top oil company, did not disclose figures in the statement on its website. (www.cnpc.com.cn).

"The refining business will become an important driver of profit," the company said in a statement.

In a separate statement on Tuesday, CNPC said its operational results for the first half were better than expected and forecast generally favourable business conditions in second half.

China raised diesel and gasoline prices by 9-10 percent on June 30 after lifting them by 6-7 percent on June 1, providing relief to refiners facing rising crude oil costs.

For most of last year, refiners in China were forced to absorb refining losses as they had to supply fuel at low prices set by a government wary of inflationary pressure, even when crude prices hit a record $147 per barrel in July 2008. (Reporting by Sui-Lee Wee and Jim Bai in BEIJING, Editing by Chris Lewis)