China to publish new diesel fuel standards

Following an emergency meeting of government agencies, including the Ministry of Environmental Protection, pricing authorities and oil firms, China has decided to higher cleaner standards for automotive diesel in response to weeks of smog and hazy skies in Beijing and other major cities.
 
When the new standards are issued, diesel produced by oil firms must have a sulfur content of 50 parts per million (ppm), similar to Euro 4 standards, effectively reducing pollutants like sulfur dioxide and oxynitride. The new specifications are expected to become a mandate across the country by the end of 2014, leaving oil companies two years to upgrade their facilities. However, the government will allow a price premium in China’s grade IV diesel versus III to motivate oil firms to quickly supply cleaner diesel to the market, said Tang Dagang of the China Research Academy of Environmental Science, which is affiliated with the environment ministry. Tang said the government is also considering tax incentives for the next cleaner fuel, national standard V. (January 31, 2013)