China Cuts Gas Price for Non-Residential Users
The Chinese National Development and Reform Commission (NDRC), which is the country’s top decision-making body, has cut the price of natural gas for non-residential users, it announced August 30.
NDRC said that benchmark price at urban natural gas stations for non-residential use has been cut by yuan 100/’000 metres3 ($15.12/’000 m3). The new price regime came into effect September 1.
The price cut is a result of a lower cost of transmission and a reduction in value added tax, NDRC said.
Xinhua news agency said the move will result in yuan 7bn of savings in operating costs annually for industrial users, power generation companies, central heating suppliers, taxi drivers, commercial entities, service providers and others downstream who buy at government-fixed prices.
Non-residential use takes 80% of China's natural gas consumption.
Shardul Sharma