Beijing raises natural gas prices by 16pc
The central government has raised the mainland’s average non-residential natural gas prices by around 16 per cent, in line with analysts’ expectations.
The central government has raised the mainland’s average non-residential natural gas prices by around 16 per cent, in line with analysts’ expectations and Beijing’s earlier guidance on gas price reform.
From September 1, the prices of natural gas at the city-gate level will be raised by up to 40 fen per cubic metre, the National Development and Reform Commission said. Residential prices and prices for fertiliser makers that use gas as feedstock will remain the same.
“This round of non-residential gas price hike is the second step of price reform and gradual price adjustments,” the commission said in a statement on its web-site.
The last time it increased prices in July last year, it said prices will be gradually raised over three years so that by next year, prices will be largely in line with overseas free market prices.
By raising gas prices, it encourages producers to produce more gas for end users
Previously, gas prices were much lower to protect consumers and farmers, but rising imports, which makes up over 30 per cent of consumption, forced Beijing to lift prices to stem losses for importers.