China hopes to stimulate demand by cutting gas prices
The country will cut regulated gas prices in order to encourage demand
Gas demand expanded by only 3.3% year-on-year for the first half 2015 - its weakest level in over a decade - and actually turned negative in May. The regulated gas prices are among the highest in the world and significantly above the price of competing fuels, such as liquefied petroleum gas (LPG), coal and fuel oil. The government raised gas prices in August 2014, but oil prices have since fallen some 50%, prompting industry to switch back to cheaper oil and LPG. "Low oil is a key driver here both in terms of weakening gas demand but also keeping import prices low and thus making a cut in city gate prices bearable. I'd be surprised if we don't see this in the second half. By how much, very d
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