In 2024, gas price linkage mechanisms in various regions will continue to advance, which will benefit urban fuel companies to fix gross margins
Recently, gas price adjustment plans for residential pipelines have been announced in many places, and the sales price of gas for residential pipelines has all been raised.
Earlier, on March 15, the Shenzhen Municipal Development and Reform Commission issued the “Notice on Jointly Adjusting the Sales Price of Pipeline Natural Gas in Our City”, which raised the sales price of natural gas for residential and non-residential pipelines starting March 16. The adjustment amount was 0.31 yuan/cubic meter (that is, 10% of the first-tier gas price for residents).
In addition, regions such as Xinghua City, Zhenjiang City, Tongzhou District of Nantong City, and Wucheng District of Fuzhou have also recently raised gas sales prices for residents.
As of March 15, 2024, price linkage mechanism documents or price adjustment notices have been issued, involving 125 administrative units at the city and county levels.
In 2024, gas price linkage mechanisms in various regions will continue to advance, which will benefit urban combustion companies to fix gross margins.
Tianfeng Securities released a research report saying that in regions where the extent of price adjustments has been determined, the average increase in gas prices for basic residents is 0.26 yuan/cubic meter. In 2024, the bank is optimistic that the fall in international gas prices will drive upstream costs down, while demand for natural gas is expected to rise further.
Companies related to the gas concept:
China Gas (00384), China Resources Gas (01193), Ganghua Smart Energy (01083), Beijing Holdings (00392), Xinao Energy (02688)