China to set new clean fuel standards

The Chinese government is set to introduce national V standards for automobile diesel fuel by June and similar specifications for gasoline by end-2013. The move was announced on Wednesday, and comes as a response to the increasing number of automobiles that put off poisoning gas.

Even before the kick-off of this initiative, Beijing will also launch national IV fuel standards for automobile diesel, which are similar to Europe's IV quality with a cap on sulphur content. Both standards will become compulsory by the end of 2017.

Minutes from a regular State Council meeting show that domestic refineries will have to upgrade their techniques, and state-owned companies should be the first ones to complete this task. The pricing mechanism should also become more reasonable. Stricter supervision as well as penalties on oil quality is also expected.