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The price of non residential gas shared by the gas charging system will be consistent with that of residential gas

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The price of non residential gas shared by the gas charging system will be consistent with that of residential gas

2020-10-30
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Gas charging system Share the price of non residential gas and the price of residential gas will be consistent

The general situation of the gas industry is that the price of non residential gas and residential gas is set by the government and the former is higher than the latter. The author predicts that the two prices will be the same for the following three reasons:

1、 According to Article 21 of the Price Law of the People's Republic of China, "the government guidance price and government pricing should be based on the average social cost of relevant goods or services, market supply and demand, national economic and social development requirements and social affordability, and reasonable purchase and sale price differences, wholesale and retail price differences, regional price differences and seasonal price differences." The price differences determined above do not stipulate the differential pricing between different entities when consuming the same goods. Therefore, it is questionable whether non residents and residents have the legal authority to set different prices.

As far as the cost is concerned, the corresponding cost of unit gas consumption of non resident users is lower than that of resident users, and their gas consumption should enjoy the wholesale price. Will this be opposed? In terms of market supply and demand, gas supply is at least balanced in other periods except winter.

In terms of social affordability, non resident users may not be higher than resident users, because with the improvement of China's basic social security, the vast majority of urban residents enjoy a sound basic life guarantee, while non resident users are completely "natural laws" and "survival of the fittest". At the same time, non resident users bear a greater contribution to tax payment and employment.

2. From the perspective of national economic policies in recent years, in order to stabilize economic growth, the country has continued to take measures such as tax cuts and lowering the price of public goods, with the purpose of releasing water for fish farming and supporting the survival and development of enterprises, especially SMEs. The differential pricing of water, electricity and gas is no longer in line with the current policy guidance and may be revised.

3. Although the larger price difference caused by the previous differential pricing has made non resident users the main source of high gross profit for gas companies, with the change of economic situation, gas companies are increasingly negotiating gas prices with large users in order to increase the quantity of gas used, which also paves the way for "same gas, same price".

In addition, in reality, differential pricing has brought a lot of trouble in determining the proportion between gas companies and upstream settlement, and obtaining government subsidies in winter gas supply. Of course, if the "same gas at the same price" comes true, it will certainly affect the revenue of gas companies in the short term, but based on the reasons of the first two points, this change should be more likely.


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