China stands firm on energy price reforms

China reiterated it would push forward with energy price reforms and use economic incentives to encourage energy saving in the world’s second-largest energy user.

China has resisted raising pump prices for gasoline and diesel since November amid concern over inflation, even though nearly half its crude oil demand is met by imports and crude costs have surged some 40 percent since the end of last year.
The country’s natural gas prices are also lower than in many other countries, while electricity prices have been frozen since mid-2006 despite surging coal costs.

China would safely push forward with energy price reforms and choose a proper time to align prices of refined oil products as well as natural gas, the National Development and Reform Commission said on its website (www.ndrc.gov.cn).

The economic planning agency also said differential power tariff policies should be implemented and preferential power treatment to energy-intensive enterprises should be halted.

Reuters