China Plans Limits on Coal Prices in Fix for Energy Crisis
- Long-term pricing mechanism is being studied by the NDRC
- Planning agency aims to return fuel to a “reasonable range”
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China is considering setting new limits on movements in coal prices that could help ease the nation’s energy crisis, though would threaten to curb profits in the sector.
The top economic planning agency is studying plans for a “price formation mechanism to guide the long-term stability of coal prices in a reasonable range,” the National Development and Reform Commission said Tuesday in a statement. Officials are already carrying out work to assess average production costs and help set a benchmark rate.