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Gas prices up in more cities
2010-07-16 13:23:45Source:Global TimesAuthor:
East China's Zhejiang Province increased retail gas prices to industrial users by 0.33 yuan ($0.05) per cubic meter Thursday, China NewsService reported.
The Zhejiang Province's price hike followed moves by Shanghai, Wuhan, Chengdu and Xinjiang, which all adjusted prices July 1.
"The price increase was aiming at curbing wasteful industrial consumption of natural gas on one hand, and bringing the country's natural gas prices closer to a market-based pricing mechanism," said Lu Ying, an analyst with Shanghai-based Toprise Information &Technology Company.
China's need of natural gas has increased quickly over the past few years. Experts predicted the country's gas demand might jump about 20 percent this year because of economic recovery, Bloomberg said.
The National Development and Reform Commission (NDRC), China's top economic policy planning body, raised wholesale gas prices by 25 percent in June, or 0.23 yuan ($0.03) per cubic meter, the first increase in more than two years.
Though there is still no specific timetable for the price reform, the Chinesegovernment has already started pushing forward the reforms. In April, the NDRC increased a pipeline transportation fee by 0.08 yuan ($0.01) per cubic meter more than the previous price.
China's natural gas pricing reform, which is under review and will likely bring a 10-20 percent price rise, would benefit companies involved in upstream exploration and drill rig production, as well as down stream suppliers, such as PetroChina and Sinopec, China's top two oil and natural gas companies.
According to Chinese law, the timing and amount of price adjustments to residential users will be decided after public hearings are conducted by local governments.
Fitch Rating, an international credit rating agency, believes the price increase will take the Chinese government one step closer to establishing a market-based natural gas pricing mechanism in the foreseeable future.
"The country will raise retail natural gas prices for residential users in some regions before the end of this year," said Lu.
"I don't think the future price increase will affect my life much as I spent about 50 yuan ($7.38) for the gas every month. So, the price adjustment will not be much of my concerns," said Dai Jinghong, an associate professor at Huzhou Vocational &Technical College in Zhejiang Province.
The Zhejiang Province's price hike followed moves by Shanghai, Wuhan, Chengdu and Xinjiang, which all adjusted prices July 1.
"The price increase was aiming at curbing wasteful industrial consumption of natural gas on one hand, and bringing the country's natural gas prices closer to a market-based pricing mechanism," said Lu Ying, an analyst with Shanghai-based Toprise Information &Technology Company.
China's need of natural gas has increased quickly over the past few years. Experts predicted the country's gas demand might jump about 20 percent this year because of economic recovery, Bloomberg said.
The National Development and Reform Commission (NDRC), China's top economic policy planning body, raised wholesale gas prices by 25 percent in June, or 0.23 yuan ($0.03) per cubic meter, the first increase in more than two years.
Though there is still no specific timetable for the price reform, the Chinesegovernment has already started pushing forward the reforms. In April, the NDRC increased a pipeline transportation fee by 0.08 yuan ($0.01) per cubic meter more than the previous price.
China's natural gas pricing reform, which is under review and will likely bring a 10-20 percent price rise, would benefit companies involved in upstream exploration and drill rig production, as well as down stream suppliers, such as PetroChina and Sinopec, China's top two oil and natural gas companies.
According to Chinese law, the timing and amount of price adjustments to residential users will be decided after public hearings are conducted by local governments.
Fitch Rating, an international credit rating agency, believes the price increase will take the Chinese government one step closer to establishing a market-based natural gas pricing mechanism in the foreseeable future.
"The country will raise retail natural gas prices for residential users in some regions before the end of this year," said Lu.
"I don't think the future price increase will affect my life much as I spent about 50 yuan ($7.38) for the gas every month. So, the price adjustment will not be much of my concerns," said Dai Jinghong, an associate professor at Huzhou Vocational &Technical College in Zhejiang Province.
