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"The reform should not be simply regarded as 'raising prices,'" Zhou said in an interview with Xinhua, explaining that it will inevitably push up prices for some energy and resource products as their rates were kept low in the past to facilitate the country's economic development and people's daily lives.

China recently allowed private capital to enter the railway market, which was dominated by State-controlled sectors, and the National Development and Reform Commission said last week that it is drafting rules to open up electricity, oil and natural gas sectors for the private investors.

China aims to cap its total energy consumption at 4 billion metric tonnes of coal equivalent by 2015, an annual increase of 4.24 percent.

The report pledged that the government would continue to implement a proactive fiscal policy and a prudent monetary policy this year.

The SAWEN was formally announced at an intergovernmental meeting organized by the Bhutan government in January 2011.