Policy & Regulation

China price reforms march on with residential overhaul

China’s economic planner will harmonise wholesale gas prices next month in a move that should boost supply and consumption China’s economic planner will harmonise wholesale gas prices next month in a move that should boost supply and consumption.
By Colin Shek and Tang Tian 25 May 2018 0 31039
ENN city gas storage cylinders A city gas storage site in China. (ENN)

China will unify wholesale gas prices for residential and non-residential consumers next month to better reflect rising demand and costs. The move is the first major change to the country’s household gas pricing system for eight years.

The harmonisation will lead to higher residential gas prices, which will encourage upstream producers and suppliers such as PetroChina to boost gas supply through imports and domestic production. Greater supply will lead to increased gas consumption – particularly in northern China, where there is currently a large gap between...