The Beijing municipal government raised the price of natural gas for civil use by 0.15 yuan per cubic meter to 2.05 yuan Sunday, April 1, according to the Beijing Times.

The newspaper reported that households in the city use on average 18 cubic meters of natural gas per month. Based on this figure, each should pay around 2.7 yuan more every month with the price increase.

The price hike will not affect most users, but will impact the households who use wall-mounted gas boilers to heat their homes during the city's four-month-long heating season.

When the local government agreed to the price increase in December of last year, a resident told a reporter with the Beijing Evening News that people with gas boilers must already pay 2,000 yuan to heat their homes during the four months. And, with the price increase, they will have to spend 100 yuan more.

To ease their burden, relevant departments in the city are looking at policies to provide subsidies to those households, the Beijing Times said.

Another group concerned about the higher price is the poorest in the city. The local government has said it will adjust the minimum wage if the increased price poses a problem, so they can maintain their living standard.

After the price hike, the Beijing municipal government will expand the number of banks able to handle natural gas fees from the current 19. In addition, indoor natural gas facilities will be guaranteed free examinations.

The price hike comes against the backdrop of increasing demand against the short supply of natural gas in the city. The capital's demand for natural gas is expected to reach 6.8 billion cubic meters in 2010, more than doubling that of 2005.

And, the price in Beijing is still cheaper than other cities. The current prices in Tianjin, Shanghai and Wuhan are 2.2, 2.1 and 2.3 yuan per cubic meter respectively.

In August 2005, the purchasing price of natural gas in Beijing increased by 0.15 yuan per cubic meter. As a result, it cost 570 million yuan more to heat homes in the city the following year, putting pressure on the gas provider, the Beijing Gas Group Beijing Municipal Gas Group.

In September last year, the prices for non-civil use increased by 0.15 yuan, to now 1.95 yuan per cubic meter for industrial use and 2.55 yuan for public services.

(CRI April 2, 2007)