Society

Majority OK Beijing's gas price hike at hearing

(Xinhua)
Updated: 2010-11-12 21:06

BEIJING - Twenty-three of 25 representatives at a public hearing in Beijing Friday agreed to price hikes for residential natural gas.

The agreement paves the way for a gas price increase in the Chinese capital as local authorities follow those in some other cities in transferring higher costs onto consumers.

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China raised the onshore natural gas ex-factory benchmark price by 0.23 yuan per cubic meter, about 25 percent, from June 1 to reflect higher costs and to encourage energy saving.

Twenty representatives, including common citizens, managers of gas suppliers, local lawmakers and political advisors, approved the proposed 11 percent price increase of 0.23 yuan per cubic meter. One accepted a 13 percent hike of 0.27 yuan per cubic meter.

Two agreed with price increases, but said they hoped the increases could be smaller. Two others objected to any price hike.

The current retail price of gas, 2.05 yuan per cubic meter, was set in 2007.

A household in Beijing will pay a further 55.2 to 64.8 yuan a year if the gas price is raised by 0.23 or 0.27 yuan per cubic meter. A local household consumes on average 20 cubic meters of natural gas per month, said the China Gas Association.

Ma Shuang, who works for the Beijing Original Design Association, said she supports a hike because the natural gas price in Beijing is low.

Moreover, the government plans to subsidize low-income residents and self-heating households, Ma said.

Qiang Lei from the Beijing Business Management College was one who opposed any price hike.

The government should offer subsidies to compensate for the higher costs rather than charging a higher retail price, Qiang said.

Lu Yingchuan, deputy director of the Beijing Municipal Development and Reform Commission, said the agency will work out better price hike and subsidy plans based on the viewpoints and suggestions of the representatives.

Natural gas demand in Beijing has grown rapidly in recent years. Gas consumption stood at 6.5 billion cubic meters last year.

Demand is expected to rise 17 percent to 7.6 billion cubic meters in 2010 and more than double to 15 billion cubic meters by 2015.