NDRC cuts natural gas prices, alters price-setting scheme

The National Development and Reform Commission cut city-gate natural gas prices by RMB0.7 (US$0.11) per cubic meter for industrial and commercial users on Wednesday, effectively equal to a 28% cut in the average price local distributors pay pipeline operators, The Wall Street Journal reported. The changes, which won’t affect residential gas consumers, will take effect Friday, and aim to shore up demand that has softened this year. The commission also said it would allow industry players to charge up to 20% more than government benchmark prices in the future, and set no downward limit for price fluctuations.