Gas rise is too ferocious: because the previous rise was less.

Gas rise is too fierce in oil: because the previous rise was less

CNPC said yesterday that the increase in LPG prices in December was mainly due to a 30% increase in international prices. Originally, it should have increased by 8.4 yuan per kilogram, first absorbing 7.4 yuan by itself.

In order to allay the doubts of the outside world, CNPC will announce its gas price in the future and will hold a press conference to announce it.

Zhang Ruizong, deputy general manager of CNPC, said that the LPG price adjustment at the beginning of each month is mainly based on the announcement by Saudi Arabian State Oil Company of LPG contract price CP (Contract Price) as the valuation index.

He pointed out that liquefied petroleum gas is mainly used as fuel, and Asian regions, including South Korea and Japan, use CP as the pricing indicator, but because the price of CP is closely related to temperature, the price is higher in winter and lower in summer.

As for the reasons for the price adjustment of LPG in December, Zhang Ruizong explained that the international contract price of LPG rose from US $895 per tonne in November to US $1162.5 in December, mainly because of the sharp increase in demand for LPG in the far East.

According to the price adjustment mechanism, the original increase of 8.4 yuan per kilogram, that is, 20 kilograms of barreled gas should be increased by 168 yuan.

In order to consider that liquefied petroleum gas (LPG) is a necessity for people's livelihood, and the price affects not only household expenditure but also prices, Zhang Ruizong said that CNPC actually increases by only 1 yuan, absorbing 7.4 yuan by itself; for every barrel of gas, CNPC absorbs 148 yuan for consumers.

However, if you add in CNPC's previous absorption of 2.25 yuan per kilogram, the current cumulative absorption amount is increased to 193 yuan per barrel.

Zhang Ruizong stressed that at present, the price of liquefied petroleum is still the lowest in neighboring Asian countries, and the pre-tax price and after-tax price per kilogram are 2.37 yuan and 6.43 yuan lower than those of South Korea, which has the lowest price in Asia.

Due to the rise in gas prices at the beginning of the month, causing public grievances, CNPC announced gas prices in a press release, which also made President Ma Ying-jeou quite concerned, requiring CNPC to fully inform the public of the reasons for the increase before the increase.

Zhang Ruizong said that in the past, the natural gas price of that month was announced in a press release on the 1st of each month, but it will be announced in the form of a press conference in the future.