China's National Development and Reform Commission on Thursday refuted local media reports that it was planning to raise the price of natural gas.
In a statement on its website, the NDRC said media reports about a sharp rise in natural gas prices were "purely untrue" and described them as irresponsible.
"Natural gas price adjustments directly affect plenty of households and the government has always observed a strict procedure for price changes," it said, adding that any adjustment in city gas prices would only come after consultations between the public and local governments.
There had been numerous reports this week speculating about a price hike in April.
China Business Times first reported on it on March 24, citing unidentified sources who said the NDRC was likely to hike domestic gas prices by between Yuan 3.10 (50 cents)/cubic meter and Yuan 3.50/cu m next month, which would translate into an increase of about 30%.
The reports allegedly sparked panic in some parts of China as consumers rushed to stock up on compressed natural gas, leading to long queues outside gas distribution companies.
China last raised domestic onshore wellhead prices by 25% in June 2010. It has been promising to quicken pricing reforms.
Beijing introduced a trial gas pricing system in Guangxi and Guangzhou provinces in December 2011, using a basket of high sulfur fuel oil and LPG prices traded in Shanghai in a 60:40 ratio to calculate natural gas prices based on 90% of the market price. In the past, prices were set using a cost-plus method taking into account pipeline and other tariffs.
