Three Chinese ministries have agreed to allow local governments to raise heating prices in response to higher coal prices.

The local governments will also be allowed to use preferential policies or reduce taxes to help coal-fired heating firms. These firms were expected to face financial hardships this winter as coal prices doubled while heating prices remain unchanged.

The National Development and Reform Commission says local governments must hold public hearings before raising prices. It also required local governments to take care of low-income families with subsidies.

(CCTV September 18, 2008)