Rise in Gas Price Boosts PetroChina

BEIJING, July 3 (Xinhuanet) -- PETROChina Co, the nation's largest natural gas supplier, soared yesterday after China said it will raise gas prices.

Shares of PetroChina jumped 6.3 percent to HK$8.77 (US$1.13) in Hong Kong, where the market was closed on Monday for a public holiday.

The National Development and Reform Commission said late Friday it will raise wholesale prices to a national average of 1.95 yuan (32 US cents) per cubic meter from 1.69 yuan for non-residential users, in a long-awaited move to bring domestic prices closer to import rates and pass on some costs to users. The price increase takes effect from July 10.

The NDRC said it will set different prices for existing gas sales based on 2012's volume and incremental gas whose sales are beyond those of last year.

Incremental sales, subject to higher rates, may account for 9 percent of 2013 sales, so the impact of the price hike should be limited, according to the NDRC.