China to expand natural gas price scheme to all households by 2015

21 March 2014 07:54  [Source: ICIS news]

SINGAPORE (ICIS)--China will extend its differentiated natural gas price scheme to all households nationwide by the end of 2015 in a bid to help the domestic gas industry achieve sustainability, the country’s economic planning agency said on Friday.

Under the scheme developed by the National Development and Reform Commission (NDRC), residential users of natural gas will be charged different rates, depending on their consumption level.

The first tier, which covers around 80% of a city’s households, will use a base rate. The next 15% of households will pay 1.2 times of the base rate, while the remaining 5% will pay 1.5 times of the base rate.

Similar programmes are already in place in parts of Henan, Jiangsu and Hunan provinces.

By the end of 2015, cities that have access to natural gas must introduce a similar scheme for its residential consumers, NDRC said in a statement.

China has been trying all ways to raise natural gas consumption in its bid to reduce pollution, while keeping prices relatively low, particularly for residential users, to cushion inflation.

The government has accelerated its reform of gas prices in recent years following a widening supply gap, industry sources said.

As part of its reform, China in July 2013 raised natural gas prices to non-residential users.
By: Fanny Zhang
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