Xinhua: China Overhauls Industry Gas Pricing

China will set an equal, fair natural gas pricing structure for all industrial users to allow market forces to lead the energy sector, the top economic planner announced on Saturday.

The National Development and Reform Commission (NDRC) previously launched a market-oriented energy pricing mechanism on July 10, 2013, assigning a different pricing system for existing and new factories.

This meant that old users enjoyed relatively low prices compared with new comers.

To fulfil its promise to gradually level the price gap, the NDRC raised the wholesale gas price for old users on Sept. 1, 2014, for the first time since the measure was put in place.

On Saturday, the NDRC announced that the wholesale price for old users would be increased for the second time, by 0.04 yuan (less than one U.S. cent) per cubic meter, and new users would pay 0.44 yuan less starting on April 1. MORE