Vehicle natural gas price will be raised to 4.5 yuan/cubic meter in China’s southernmost Hainan province from Friday, pegging with gasoline price at a unit price ratio of 0.66:1, according to the provincial government authority on Thursday.

Hainan Provincial Bureau of Commodity Price said in a circular on Thursday that taxies and public transportation industry would be awarded 0.74 yuan/cubic meter of government subsidies to cushion the impact of the price hike in Haikou, the capital city of Hainan province, while 0.54 yuan/cubic meter of subsidies will be given to other parts of the province for the same reason.

In the meantime, the wholesale gas price will be raised to 3.76 yuan/cubic meter from previous 3.20 yuan/cubic meter in Haikou, while the price in other cities will be 3.96 yuan/cubic meter compared with previous 3.40 yuan/cubic meter.

Officials with the commodity price authority said the price hike aims to avoid blind expansion of natural gas vehicles in the province, ensuring enough gas supply to public transportations.

Fushan oilfield, owned by PetroChina (PTR.NYSE; 601857.SH; 0857.HK)’s parent company China National Petroleum Coroporation (CNPC), is the major natural gas source to Hainan province. 
 

 
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