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20% gas price hike ‘too high’
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A PROPOSED hike in gas prices of at least 20 percent for Shanghai householders is too high, participants told a public hearing yesterday.
The city is preparing for its first household gas price increase since 2008, which officials say is to reflect higher energy costs and encourage energy conservation.
But at the hearing at the Shanghai Science and Technology Museum some participants claimed that business and institutions should be asked to shoulder more of the burden.
“As residential users only account for 45 percent of Shanghai’s natural gas consumption, we think non-residential users should bear more of the cost increase,” said Tao Ailian from the Shanghai Consumer Rights Protection Commission.
Non-residential customers currently pay more for gas.
Another participant, Yang Min, representing the Shanghai Federation of Trade Unions, said a 20 percent hike is too much in view of local income levels and price hikes in other utilities in recent years.
“Maybe 10 percent could be acceptable,” said Yang.
China is asking local governments to introduce progressive tariffs for natural gas for residential use to encourage saving amid rising demand for the cleaner-burning fuel.
The three-tier system charges more for heavier use.
Shanghai plans to raise the gas price by 0.52 yuan (8 US cents) to 3.02 yuan per cubic meter for the first 290 cubic meters used in a year.
That volume is sufficient for 80 percent of city households.
The cost between 290 and 500 cubic meters will be 3.62 yuan while above 500 cubic meters will be 4.53 yuan.
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