China cylinder gas price rises despite warning

BEIJING, Nov 4 (Reuters) - The price of cylinder gas in China's southern boomtown of Guangzhou has jumped more than 6 percent since last week's fuel price hike, state media said on Sunday, despite a warning from Beijing not to raise prices.

A standard 15-kg cylinder of gas, widely used in China for cooking and heating, had jumped at several shops from 98.5 yuan ($13.21) to a record 105 yuan, the Guangzhou Daily said. With delivery charges, the price was 120 yuan.

"To save money, some residents have had to take out their old kerosene stoves," the newspaper said. It did not say who had authorised the increase.

China unexpectedly raised domestic gasoline and diesel prices by 10 percent on Thursday, the first increase in 17 months, as officials rushed to tame a worsening supply crisis by easing losses at state refiners.

China's top economic planning body, the National Development and Reform Commission, issued a warning on Saturday against unreasonable follow-on rises in commodity prices.

"Following the price hike, everywhere must....increase supervision, organise properly production and supply, and protect the basic stability of market prices," the commission said in a statement.

Companies not directly affected or affected only slightly by the hike must also not use it as an excuse to lift their prices, the commission added.

($1=7.454 Yuan)