June 17, 2013
Translated by Siu Tan

Back in February, in a bid to combat the high levels of air pollution that lingered in some Chinese cities over the winter, the State Council announced that new national fuel standards would be unveiled by the end of the year and introduced nationwide in 2017.

After fierce debate between representatives of China's oil refiners, auto industry and the Ministry of Environmental Protection, a draft of the new "National Standard V" was agreed to before last week's "Dragon Boat Festival" holiday, according to a report in last Thursday's Economic Information Daily.

The newspaper, which is published by Xinhua News Agency, also said that the State Council had already approved the standard and that details will be officially released in the third quarter of this year in order to give refiners and car manufacturers time to upgrade their products before the 2017 deadline.

The State Council also announced new measures aimed at combatting air pollution last Friday.

The New Standards

The new standards are referred to as "National Standard V," as they represent the fifth generation of fuel standards that apply to passenger cars be introduced nationwide in China.

The new standard will limit the amount of sulfur in regular gasoline to 10 parts per million (ppm), down from the current maximum of 50 ppm.

Similar to the changes that occured when Beijing introduced stricter fuel standards in May 2012, the octane ratings of fuel sold at most gas stations around the country will also be lowered from the current No. 90, No. 93 and No. 97 to No. 89, No. 92 and No. 95.

After the new standard comes into effect in 2017, the car industry will be under added pressure to meet new emissions standards, as lower octane ratings also mean lower fuel efficiency. Oil refiners will also have to spend money to upgrade their facilities.

According to Cao Xiang (曹湘), director of the National Petroleum Products and Lubricants Standardization Technical Committee (全国石油产品和润滑剂标准化技术委员会), the new standard will also ban the presence of manganese in fuel.

Diesel Standards

In a related development, starting from next month the minimum quality of diesel sold across China will be lifted to "National Standard III" (国三标准), the equivalent of Euro III standards.

The State Council had originally intended for the "National Standard IV" diesel to be introduced nationwide on 1 January 2011.

One of the main differences between "National Standard III" diesel and the current standard is the level of sulphur in the fuel.

"National Standard II" diesel has a sulphur content of over 2,000 ppm, but the sulphur content in "National Standard III" diesel cannot exceed 350 ppm.

In February, the State Council also said that a new "National Standard IV" for diesel would be introduced before the end of 2014. This new standard will further reduce the maximum amount of sulfur present in diesel to 50 ppm. The State Council also said that a new "National Standard V" for diesel, which will further reduce the amount of slufur to 10 ppm, would be announced by June this year.

For more details on China's fuel and diesel standards, click here.

Links and Sources
Economic Information Daily:汽油国五标准送审稿争议中通过
Beijing Times:最严汽油标准送审稿获批 国V将降低油品标号
Caixin:汽油国V标准送审稿获得通过
Economic Observer Online:New National Fuel Standard Kicks In
Wall Street Journal:China to Raise Fuel Standards to Combat Pollution