China says it will raise fuel standards to combat pollution

China’s State Council said it would raise national fuel standards to levels similar to those currently found in the U.S. and Europe by the end of 2017. Meanwhile, Chinese officials said they would publish new automotive diesel standards as soon as possible that will slash sulfur emissions to about one-seventh of current permitted levels. The new diesel standards will become effective nationwide by the end of next year, it said.
Hazardous levels of pollution in China’s capital city have forced the government to implement emergency measures, such as the closing of 103 heavy polluting factories and removing 30% of government vehicles from Beijing’s roads.
Diesel fuel in particular has been blamed for much of China’s pollution problems. Trucks account for almost one-quarter of China’s vehicles but contribute a disproportionate share, almost 80%, of vehicle particulate matter.
The State Council also said it would hold industry more accountable. Fees for pollution will be raised, the statement said, while enforcement of the fuel-quality standards will be stepped up and penalties increased for violations, it added. It ordered China’s three state-owned oil companies, China National Petroleum Corp., China National Offshore Oil Corp. and China Petrochemical Corp., to upgrade refining facilities to meet the standards.
On the other hand, the State Council said that Chinese refineries will be given a freer hand in passing on the cost of the upgrades to consumers. China strictly controls fuel prices, which limits the ability of refining companies to pass on these costs currently.