Green gas, diesel to see price hikes

The National Development and Reform Commission (NDRC). China's top planning agency, on Monday announced future price hikes for greener gasoline and diesel in a move to curb air pollution in the world's largest auto market.

The price adjustment is atypical versus the NDRC's announcements of fuel price changes in line with international oil price fluctuations.

Prices of upgraded automobile gasoline and diesel that meet the National Standard IV will be raised by 290 yuan ($47) per ton and 370 yuan per ton, respectively, the NDRC said in a statement on its website.

The National Standard IV for gasoline and diesel, similar to Europe's IV quality with a sulfur content of no greater than 50 parts per million (ppm). will become compulsory by the end of 2014, according to the State Council's road map for upgrading fuel quality announced early this year.

The National Standard V, equivalent to Europe's V standard for vehicle emissions with a cap of 10 ppm on sulfur content, will be made mandatory by the end of 2017.

For automobile gasoline and diesel upgraded to the National Standard V from the National Standard IV, their prices will be further lifted by 170 yuan per ton and 160 yuan per ton, respectively, said the NDRC statement.

Currently only Beijing and Shanghai adopts the National Standard V.

A gradual rise in accordance with local conditions is advised by the NDRC, which said in the statement local authorities are allowed to decide on different price hike strategies based on the national policy.

Stressing that the price hike decision was made after comprehensive investigations and audits of upgrading costs by relevant government agencies and oil companies, the NDRC said needy people and the non-profit sector will gain subsidies from the central coffer.

The taxi industry will be offered financial help as well before the implementation of taxi fare adjustments.