July 1, 2013
Translated by Zhu Na

The National Development and Reform Commission (NDRC) announced last week that it plans to lift non-residential natural gas prices as of July 10, 2013.

The economic planning agency said that the price of natural gas needs to be lifted in order to ensure market supply and to promote energy conservation through the efficienct use of resources.

Residential gas prices will not be changed.

After the adjustment, the national average wholesale price for natural gas will be lifted to 1.95 yuan per cubic meter from 1.69 yuan per cubic meter, an increase of about 15 percent.

The NDRC also said the price of natural gas used to make fertilizer wouldn't rise by more than 0.25 yuan per cubic meter.

The announcement said that government's management of natural gas prices has shifted from factory price to the city gate price.

In keeping with earlier pricing reforms piloted in Guangdong and Guangxi, the price of natural gas will be determined by market forces, though it will capped and cannot exceed a certain limit. The final retail price is managed by local pricing authorities.

Links and Sources
NDRC: 國家發展改革委關于調整天然氣價格的通知
Economic Observer Online: Natural Gas Prices to Rise
Economic Observer Online: CNPC Denies Forcing Up Gas Prices
Economic Observer Online: China to Push Ahead with Gas Price Reform