Non-residential use of natural gas 0.4 yuan per cubic liter

In a recent move to align with the guiding principles of the Third Plenary Session of the 18th CPC Central Committee, the Chinese government has revised the pricing structure for non-residential natural gas. This adjustment aims to enhance the efficiency of resource allocation and further promote the development and importation of natural gas resources. The National Development and Reform Commission announced that starting from September 1st, the price for non-residential natural gas stations will be increased by 0.4 yuan per cubic meter, while residential gas prices will remain unchanged. The policy update follows the implementation of the natural gas price reform in 2013, which had a positive impact on market supply and demand dynamics. It contributed to a significant acceleration in domestic resource exploration and the introduction of foreign natural gas supplies, leading to a substantial increase in overall supply capacity. As a result, the distribution of natural gas resources has become more efficient, and the utilization rate of the fuel has improved. Under this new regulation, the price for incremental gas stations will stay the same, but the non-residential price hike is expected to encourage more responsible usage and better market management. Notably, the application of price adjustments specifically targeting chemical fertilizer production has been temporarily put on hold. This decision reflects a cautious approach, as authorities are monitoring the fertilizer market closely and will reassess the situation when favorable changes are observed. The notification emphasizes the importance of coordinated efforts among local governments, relevant departments, and natural gas suppliers. It calls for enhanced production planning and supply-demand coordination to ensure stable market supply. Additionally, it urges attention to the rationalization of sales prices and the maintenance of fair pricing practices. Regulatory bodies are instructed to conduct strict inspections, address any price violations promptly, and safeguard the stability of the natural gas market. This adjustment underscores the government’s commitment to balancing economic growth with sustainable energy use, ensuring long-term stability and efficiency in the energy sector.

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