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China's top economic planner will cut the price of natural gas for non-residential users to ease the burden on downstream industry players.

From Friday, the benchmark price at urban natural gas stations for non-residential use will be cut by 100 yuan (about 15.12 U.S. dollars) per thousand cubic meters, the National Development and Reform Commission (NDRC) announced Wednesday.X The move will result in 7 billion yuan of savings in operating costs annually for industrial users, power generation companies, central heating suppliers, taxi drivers, commercial entities, service providers and others downstream who buy at government-fixed prices, said the NDRC.

According to the NDRC, the price cut results from lower costs of gas pipeline transmission and adjusted value added tax rate for natural gas.

Non-residential use takes 80 percent of China's natural gas consumption. The price cut is expected to save all non-residential natural gas users 16 billion yuan as its influence will extend to market prices.

The price cut will reduce corporate costs and boost supply-side structural reform, said Jing Chunmei, researcher at China Center for International Economic Exchanges.

The price cut will also encourage clean energy use and improve the energy mix to strengthen environmental protection, she said.