The price for piped natural gas rose on Wednesday in Guangzhou, capital of south China's Guangdong Province, for the first time since 1995.
Users now have to pay 2.5 yuan (30 US cents) per cubic meter of piped gas, compared with the previous price of 2.2 yuan (26 US cents).
The Guangzhou Provincial Price Bureau said the hike was a result of rising raw material prices and production costs, as well as recent record high international crude oil prices.
The operator of the city's gas resources, the Guangzhou Gas Company, had requested the increase, which the bureau agreed to after a public hearing.
Nevertheless, piped gas is becoming increasingly popular among local residents given that the price of bottled liquefied petroleum gas has been rising since last November.
The price of one bottle of LPG climbed over the 80-yuan (US$9.80) barrier this month. It was just 60 yuan (US$7.30) in November last year. At some outlets in the city, the price per 15-kilogram bottle has soared to 85 yuan (US$10.40).
LPG prices are expected to continue rising to nearly 100 yuan (US$12) per bottle, according to the New Express newspaper.
Market prices for LPG in Guangzhou have risen sharply this month. The listed price was 4,580 yuan (US$559) per ton on October 8, jumping to 4,700 yuan (US$573) one day later and continuing its ascent on October 10 to 4,800 yuan (US$585).
The climbing prices have led many LPG users to consider converting to piped natural gas.
The Guangzhou Gas Company reports that the number of newly registered piped gas users has "greatly surpassed" last year's figure. Between October 8 and 10, more than 2,000 households applied for piped natural gas, jumping 54.8 percent year-on-year.
In a survey conducted by the city's price bureau, 75 percent of respondents expressed concern over the general rise in consumer prices, especially for medical services.
(China Daily October 14, 2004)
