Water prices need to be raised, but not excessively given that a considerable amount of Chinese are still struggling to make ends meet.

China's National Development and Reform Commission has briefed the media about its recent price adjustments for water, electricity and gasoline. It says, the rule of supply and demand will play a bigger role but government regulations will still be in place to maintain social fairness.

At the beginning of the year, coastal Chinese cities such as Shanghai and Tianjin raised water prices. Many other cities are about to follow suit and have held public hearings on the issue.

Zhou Wangjun, deputy director of Price Dept. of NDRC, said, "This round of water price rises is an effort to promote water conservation, improve sustainable use of water resources and the environment. The price rise comes from fees for water resources and sewage treatment."

Water prices need to be raised, but not excessively given that a considerable amount of Chinese are still struggling to make ends meet.

National Development and Reform Commission says it will give special consideration to low-income groups and provide them with subsidies to ensure their living standards do not fall.

Electricity and gasoline prices are also subject to reform. In March, the government opened 20 percent of the electricity market, allowing big companies to buy electricity directly from power plants and to negotiate the price.

The commission says some provinces have given high energy-consumption enterprises preferential policies and lowered prices. It says this is not conducive to industry restructuring and upgrading.

On gasoline, the NDRC said its pricing system is based on the price fluctuation in the international market. China has raised gasoline prices three times this year. The commision says this has benefited the oil refinery companies and stabilized the supply of gasoline.

Editor: Guo Changdong Source: CCTV