Starting in September, the benchmark gate station price for gas used by non-residents will be reduced by 0.1 yuan per cubic meter

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**Notice of the National Development and Reform Commission on Reducing the Benchmark Gate Station Price for Natural Gas Used by Non-residents
Document No.: Fa Gai Jià Ge [2017] 1582

To the Development and Reform Commissions and Price Bureaus of all provinces, autonomous regions, and municipalities directly under the Central Government, as well as China National Petroleum Corporation (8.130, 0.01, 0.12%) and Sinopec Group Corporation:

In line with the overall requirements set forth by the **** and the State Council regarding the advancement of supply-side structural reforms, and based on the results of the cost monitoring for natural gas pipeline pricing, it has been decided to reduce pipeline transportation costs. Taking into account adjustments to the value-added tax rate applied to natural gas, the benchmark gate station price for natural gas used by non-residents is also being reduced. The relevant matters are hereby notified as follows. 　　I. Reduce the benchmark gate station price for non-residential gas use: The benchmark gate station price for non-residential gas use is reduced by 100 yuan per thousand cubic meters. The adjusted benchmark gate station prices for non-residential gas use in various provinces (regions, municipalities) are listed in the attached table. 　　II. Implementation Date It shall come into effect as of September 1, 2017. 　　III. Work Requirements The adjustment of natural gas prices has a wide impact and attracts significant public attention; therefore, all regions and natural gas production and operation enterprises must attach great importance to this matter, cooperate closely, and work together to carry out the relevant tasks properly. 　　(1) Carefully organize the implementation of the plan. All regions should strengthen organizational leadership and make careful plans, enhance market monitoring, improve emergency response measures, and ensure the smooth implementation of price adjustment plans ； Natural gas production and operation enterprises should proactively cooperate with local development and reform (price) departments, strengthen communication and consultation, and carry out relevant work diligently. 　　(II) Implement price reduction measures as soon as possible. After the adjustment of the benchmark gate station prices, the gate station prices charged by natural gas production and distribution enterprises to various provinces (regions, municipalities) should, in principle, be reduced by an equivalent amount simultaneously. All regions should expedite their efforts. By taking into account factors such as the reduction in station prices, the impact of the lower VAT rate on natural gas on the retail sales stage, and the need to strengthen oversight of transmission and distribution prices within the province, they should reduce the selling prices for non-residential users as soon as possible. This will help to fully realize the benefits of the reforms and ensure that the price cuts are effectively implemented, thereby reducing the cost of natural gas for end-users. 　　(III) Promote open and transparent trading of natural gas. Natural gas production and operation enterprises as well as users are encouraged to actively participate in transactions on natural gas trading platforms; the prices of natural gas traded publicly on platforms such as the Shanghai and Chongqing Petroleum and Natural Gas Trading Centers are determined by the market. Trading platforms should adhere to the principles of openness, fairness, and impartiality, operate in a regulated manner, exercise strict management, and pursue continuous innovation. They should also release information on transaction volumes and prices in a timely manner, so as to establish a fair market price for natural gas and lay the foundation for the marketization of prices. 　　(IV) Ensure the stable operation of the natural gas market. Natural gas production and operation enterprises should strengthen production organization and supply-demand coordination, increase efforts in upstream exploration and development, determine import resources for winter in advance, accelerate the construction of storage and transportation facilities, address bottlenecks in pipeline transport capacity, and ensure a stable supply of resources as well as the smooth operation of the market ； The policy of reducing gas prices for non-residential users must also be implemented earnestly. Price regulatory authorities at all levels should step up price inspections and patrols, and investigate and deal with in accordance with the law any illegal and irregular practices such as raising prices or indirectly increasing them by altering pricing methods, adding additional steps, imposing mandatory services, or colluding on prices, so as to effectively maintain order in the natural gas market. 　　(5) Strengthen publicity and guidance. All regions should strengthen publicity and interpretation to guide public opinion in properly understanding the importance of reducing gas prices for non-residential users in advancing supply-side structural reforms and lowering costs for enterprises in the real economy, respond promptly to public concerns, and create a favorable public opinion environment. 　　Attachment: Table of Benchmark Gate Station Prices for Natural Gas Used by Non-residents in Various Provinces (Regions, Municipalities) **Commission for Development and Reform August 29, 2017