Consumer price drops in several industries controlled by state-owned enterprises in the beginning of 2007 drew applause from citizens and demands for further price reductions in the face of full market competition, the Beijing Youth Daily reported Monday.

The abolishment of gas pipeline installation fees for new homes in Guangdong Province, the cut in Beijing bus ticket prices, and the Ministry of Railway's promise of stable ticket prices during this year's Spring Festival were announced at the beginning of this year.

In the aftermath, oil magnates lowered petrol prices as ordered by the National Development and Reform Commission, and a leading telecommunication company said in a declaration it has amended or crossed out service terms which have been criticized as unequal "overlord items".

Most consumers hailed the price modifications as a sign of the large enterprises learning to accommodate consumers, and claimed that more such price reductions should be encouraged in state controlled industries, but Chinese Academy of Social Sciences Institute of Finance and Trade Economics research fellow Wen Guifang called on people to be less excited and to overlook the price cuts.

Wen has been the focus of debates since he remarked that public consumer price reform was tampered with by certain interest groups in late 2006.

According to Wen, the price reform of railway, oil and telecom industries stem from different reasons and have a variety of outcomes. Stable railway ticket prices can be credited to the government's efforts to aid travelers, while China Telecom's service improvements are the results of business competition from other state-owned enterprises.

According to an online survey on a portal website, 90 percent of those surveyed believe the slight price drop in petrol prices is far from enough compared with the international oil price decreases.

Han Xiaoping, Content Supervisor of the energy information provider china5e.com said the 220 yuan per ton decrease in petrol would not induce profit loss for oil companies, compensated by the appreciation of yuan on the international market.

Wen believes ordinary consumers now actually have no say concerning pricing mechanisms, which are not transparent or public enough.

Unlike the reluctance to reduce consumer prices, "monopoly enterprises always stress prices should be geared to international standards. In their eyes, international standards are only increasing prices," said Wen.