China timetables fuel quality upgrade

BEIJING - The State Council on Wednesday issued a timetable for its program to upgrade fuel quality, with a strict standard to be promoted nationwide before 2017.

The country will issue the '5th-phase' standard for automobile petrol, with sulphur content within 10 ppm (parts per million), before the end of the year with a grace period before the end of 2017, according to an executive meeting of the State Council chaired by Premier Wen Jiabao.

Beijing is the only city in China to have adopted such a standard, equal to Europe's Euro V vehicle emissions cap of sulphur content below 10 ppm.

When a grace period comes to an end, it means the standard will be in practice nationwide.

But the '5th-phase' standard for automobile diesel, with sulphur content within 10 ppm, will come earlier, before June this year, with a grace period before the end of 2017, the statement said.

The "4th-phase" standard for automobile petrol, namely no more than 50 ppm of sulphur content, has already been issued.

Based on this, the General Administration of Quality Supervision, Inspection and Quarantine and the Standardization Administration will soon issue the '4th-phase' standard for automobile diesel with sulphur content within 50 ppm and the transitional time will expire at the end of 2014, according to the statement.

Domestic oil refiners should upgrade their equipment to ensure that they can provide qualified products following the timetables, it said, adding that more efforts should be made to step up research on automobile engines.

Gas prices should be fixed properly and subsidies should be given to disadvantaged people and non-profit organizations, the statement continued.

The Sinopec Corp. said last week it is upgrading desulphurization facilities and will supply cleaner oil products that meet national standards for pollutant emissions in 2014.

China's developed regions, including Shanghai, Jiangsu and Zhejiang, use the national '4th-phase' standard of 50 ppm or below, while the remaining regions have adopted the national '3rd-phase' standard, which allows the sulphur content of fuel to be as high as 150 ppm.

But cleaner fuel may also mean higher prices. When Beijing and Shanghai switched from the national "3rd-phase" standard to the stricter national "4th-phase" one five years ago, petrol prices rose by 0.2 to 0.3 yuan ($0.03 to 0.05) per liter.

The possibility of price hikes has stirred much discussion about who will bear a rise in petrol prices, which are already held by many to be too high.