Shanghai hikes gas price, introduces progressive rates for energy saving

Shanghai will raise the household gas price by one-fifth starting September 1 as the city introduces progressive tariffs for natural gas of residential use, the city's economic planning body said today.

The price will be hiked by 20 percent to 3 yuan (48 US cents) per cubic meter for the first 310 cubic meters used in a year, according to the Shanghai Development and Reform Commission. That volume is sufficient for 80 percent of city households.

The cost between 310 and 520 cubic meters will be 3.30 yuan per cubic meter while for above 520 cubic meters it will be 4.20 yuan per cubic meter.

The three-tier system charges more for heavier use as part of government efforts to encourage energy saving amid rising demand for the cleaner-burning fuel. It will also be the first household gas price increase since 2008.