Gas prices rose Wednesday (Oct. 13) in the capital of South China's Guangdong Province for the first time since 1995.

Local residents now have to pay 2.5 yuan (30 US cents) per cubic metre of piped gas, compared with the previous price of 2.2 yuan (26 US cents).

The Guangzhou Provincial Price Bureau said the rise was a result of rising raw material prices and production costs, as well as recent record international crude oil prices.

The operator of the city's gas resources, the Guangzhou Gas Company, had called for the rise, which the bureau agreed to after a public hearing.

Despite the price rise, piped gas is becoming increasingly popular among local residents, given that the price of bottled liquefied petroleum gas (LPG) has been rising since last November.

The price of one bottle of LPG finally broke the 80 yuan (US$9.8) barrier this month. It had been 60 yuan (US$7.3), in November last year.

The price per 15 kilogram bottle of LPG has soared to 85 yuan (US$10.4) in some outlets in the city.

And it is expected to continue rising to nearly 100 yuan (US$12) per bottle, according to report in the New Express newspaper.

An investigation by the provincial authorities revealed that price of LPG has been greatly affected by rising international petroleum prices.

The market price of LPG in Guangzhou has risen sharply this month.

The listed price was 4,580 yuan (US$559) per ton on October 8, but it climbed to 4,700 yuan (US$573) one day later, and continued to soar on October 10 to 4,800 yuan (US$585).

The huge price rise in bottled gas means that some LPG consumers are considering transferring to piped gas.

Sources from the Guangzhou Gas Company said the number of newly registered users of piped gas has "greatly surpassed" those over the same period of last year.

Between October 8 and 10, more than 2,000 households applied for piped gas, a year-on-year rise of 54.8 per cent.

Another survey by the city's price bureau found that 75 per cent of residents expressed concern over the general rise in prices, especially for medical services.

Editor: Olivia