Beijing pushes refiners on cleaner fuel

The central government has urged domestic refiners to accelerate the upgrade of the quality of domestically produced fuel to tackle worsening air pollution.

The move will increase the cost on refiners but Beijing has indicated that fuel prices should be priced "reasonably" to reflect its impact on environmental protection.

In a statement released after a meeting of the State Council, chaired by Premier Wen Jiabao, Beijing said authorities responsible for setting fuel quality should announce as soon as possible the National IV diesel emission standards. It would be launched nationwide by the end of next year.

The standards were announced in 2010, but implementation has fallen behind target, as the supply of fuel at such standard has been insufficient to meet nationwide demand.

The more stringent National V emission standards for diesel and petrol are to be unveiled this year and implemented by the end of 2017, the State Council said.

"Domestic oil refiners should speed up the upgrading of their facilities to ensure fuel supply can meet demand according to the implementation schedule," it said, adding the nation's three state-backed oil refiners must complete their upgrade on time.