China to roll out cleaner fuel standards: Government

BEIJING (REUTERS) - China will introduce national V standards for automotive diesel fuel by June and similar specifications for gasoline by end of this year, the government said on Wednesday, as it moves to clear up the smoggy air of many Chinese cities.

Ahead of these moves, Beijing will soon launch national IV fuel standards for automotive diesel, similar to Europe's IV quality with a sulphur content of 50 parts per million (ppm), according to a central government post on www.gov.cn, confirming an earlier Reuters report.

The new national V standards - similar to Euro V with a sulphur content no greater than 10 ppm - will become compulsory by the end of 2017, and the national IV for diesel by the end of 2014, the government said, to allow oil refiners time to upgrade their facilities and the market time to phase out old vehicles.

Once the new specifications are published, the government will allow price premiums for higher quality fuels versus lower quality ones, according to the government circular, as a motivation to oil firms to quickly start producing cleaner fuels.