Natural gas prices officially merged on April 1, 2015

On February 28, 2015, the National Development and Reform Commission announced that since April 1st, the prices of on-site natural gas and incremental natural gas prices have been combined. The prices of the highest gas stations in each province were reduced by 0.44 yuan per cubic meter, and the price of the highest gas station stock increased by 0.04 yuan. This is also the first time in China's price reform that the price of natural gas has been substantially lowered. At the same time, this year will establish a comprehensive system of residential gas use ladders. According to estimates by industry experts, this price adjustment will reduce the cost of gas for enterprises by 30 billion yuan.

Natural gas prices officially merged on April 1, 2015
Natural gas prices officially merged on April 1, 2015

According to Cheng Gang, Director of the Policy Division of the Price Development Department of the National Development and Reform Commission, such an increase or decrease is just 4 cents 8 cents, which realizes the integration of non-residential natural gas, stock gas, and incremental gas prices. The market and level of natural gas market prices have been increased, the leveling competition of enterprises has been promoted, and it has also helped to promote the stable development of the natural gas industry.

The inventory of natural gas refers to the actual amount of gas used in the previous year. Incremental gas is the amount of new gas added this year compared with the previous year. The inventory gas price is relatively low. Currently, in the use of natural gas, the inventory gas accounts for approximately 80%. About 20%. Experts said that with the natural gas prices coming together, the price of natural gas will eventually return to a reasonable level in market competition. Chi Guojing, secretary-general of the China City Gas Association, said that through this integration, the country will form an overall price for natural gas. Slowly, through the natural gas trading market, the price of natural gas has been stabilizing and falling, forming a price that will allow the entire middle and lower reaches of the country to adapt to marketization.

In addition to achieving price integration, another aspect of the market-oriented reform of natural gas prices is to release the pilot gas prices outside the fertilizer companies, which will be negotiated between supply and demand sides. According to the notice from the National Development and Reform Commission, the price of residential valve stations will not be adjusted. The non-residential natural gas price adjustment will affect more downstream industrial enterprises and gas taxi drivers. CCTV financial reporters interviewed experts in the industry and experts estimated that this time the price adjustment will reduce the cost of gas for enterprises by 30 billion yuan.

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