20% gas price hike and tiered charges
Print Edition
SHANGHAI gas prices will rise by 20 percent next month, with heavy users charged more under a new three-tier tariff system.
Officials say this hike, the first increase for domestic users since 2008, reflects higher energy costs, while the different tariffs encourage lower energy consumption.
“The price plan is tailored to the city and follows a series of hearings and opinion polls in various formats,” said Luo Huimin, an official at the Shanghai Development and Reform Commission.
From September 1, the basic gas price will rise 20 percent to 3 yuan (48 US cents) per cubic meter for the first 310 cubic meters used in a year — a volume sufficient for 80 percent of city households.
The cost between 310 and 520 cubic meters will be 3.30 yuan per cubic meter, while for above 520 cubic meters it will be 4.20 yuan per cubic meter.
Calculations run on a yearly cycle.
The market price of natural gas has increased more than 37 percent since 2008, the commission said, while Shanghai has only raised prices once, for commercial and industrial users in 2010.
“The price rises are in response to China’s energy consumption reforms,” commission official Wu Xinhua said earlier.
“This reflects the higher costs of natural gas and will secure gas resources of better quality,” added Wu.
However, Shanghai’s three-tier system will not be applied in public places currently charged domestic rates. These include schools and nursing homes.
Instead, they will be charged 3.05 yuan per cubic meter, compared with the tariff of current 2.5 yuan per cubic meter.
The new pricing regime makes allowances for larger households.
Those with five people or more will get an extra 150 cubic meter allowance in each volume tier.
And households with seven people or more can choose either an extra 150 cubic meters in each tier or pay a fixed rate of 3.05 yuan per cubic meter.
Officials said the extra revenue will help with upgrading and maintaining pipelines and improving services for customers.
“We will continue providing better services for users, such as canceling transfer fees and introducing a third-party assessment system,” said Cui Zhongyi, general manager of Shanghai Gas (Group) Co Ltd.
“Our hotline and online services will be strengthened as well,” added Cui.
Tighten their belts
But some city residents said the hike, on the back of other utility cost rises, means that they will they have to tighten their belts a bit more.
“Water prices have already risen, now it’s the gas price,” said Wu Zhonghao, a white-collar worker who shares an apartment with a roommate and whose current gas bill is around 50 yuan a month.
“Even though it might only be an extra 5 yuan more per month on gas, it means we’ll perhaps think twice if we plan to cook more often.”
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