Reform raises natural gas prices

BEIJING, June 2 -- The National Development and Reform Commission (NDRC) announced a 24.9 percent rise in natural gas prices Monday in a reform to spur supply of the cleaner-burning fuel, the use of which is growing fast as the country gives more weight to the environment.

China last raised both wellhead gas prices and wholesale prices to industrial users in November 2007 but exempted more sensitive consumers such as households and fertilizer firms. This time, the NDRC said it would abolish the two-tiered gas pricing system. The announcement said onshore wellhead prices would rise 0.23 yuan a cubic meter, or 24.9 percent, which would result in a total of 1,155 yuan (US$169.1) per 1,000 cubic meters.(Source: Shenzhen Daily)