The price of cooking gas is expected to increase by around 16 percent in the near future, the Shanghai Price Bureau announced at a public hearing yesterday.
A coalition of six local gas companies, four manufacturers and two distributors have asked the bureau to allow them to raise gas prices, which are currently set at 0.90 yuan per cubic meter.
The bureau has approved the request, which will now be considered by the municipal government. After approving the price increase, the bureau organized a meeting with 100 local citizens and officials yesterday to hear public reaction to the plan.
Comments made at yesterday's meeting, which saw most regular citizens denounce a price increase, will be passed along to the government before it makes a final decision.
"The public utilities should think of improve their management instead of raising price," Gu Yaming, a representative to the National Chinese People's Political Consultative Congress, told bureau officials yesterday.
"Gas prices are related to people's daily lives, especially poor families," said Gu.
With the average local family using 38 cubic meters of cooking gas a month, the increase would see a typical family's gas bill rise by 5.70 yuan a month.
"That amount is nothing serious for most families, but we should also consider families with incomes below the poverty line," said Gu.
About 420,000 local residents still live on an average per capita monthly income of 290 yuan, meaning even a small increase in gas prices could cause hardship.
"Officials should think whe-ther the move falls in line with President Jiang Zemin's Impor-tant Thought of Three Re-presents," said a local resident, who declined to be identified.
While consumers don't like the increase, gas companies say it is necessary as they have been operating at a loss.
Increased raw material costs are also putting pressure on the companies, which have seen the prices of oil and coal rise recently. Since 1999, producers have seen the an-nual cost of oil increase by 100 million yuan.
With the crackdown on unlicensed coal mines, raw materials could get even more expensive in the near future, the gas companies said.
The price of gas for factory use will also rise, but by a smaller percentage.
(eastday.com December 28, 2002)
