China plans to bring forward the introduction of National Phase 5 motor gasoline and gasoil emission standards nationwide by one year to January 1, 2017, the State Council said Tuesday, April 28.
All 11 provinces in eastern China will fast track the introduction further to January 1, 2016, the council said in a statement after an executive meeting presided over by China's Premier Li Keqiang.
The two-year advancement in eastern China is an extension of earlier plans to fast track the implementation in the Beijing/Tianjin/Hebei province, Yangzi River Delta and Pearl River Delta regions to 2016, the council said.
National Phase 5 emission standards for motor gasoline and gasoil cap the sulfur content at 10 ppm, equivalent to the Euro 5 standard.
China initially mandated the nationwide implementation of National Phase 5 standard motor gasoline and gasoil from the start of 2018.
Some regions like Beijing began voluntarily adopting it as early as 2013.
The country will also increase the supply of higher-standard gasoil to other sectors ahead of the original 2018 deadline for motor fuels, with National Phase 4 gasoil to be supplied nationwide to non-auto sectors from July 2017 and National Phase 5 from January 2018.
Currently only National Phase 3 gasoil, which caps sulfur content at 350 ppm, is available to non-auto sectors and National Phase 4 gasoil, which caps sulfur content at 50 ppm, to the auto sector.
The equipment and technology upgrades required by refiners to meet the higher standards nationwide are estimated to cost around Yuan 68 billion ($11 billion) and will spur demand in related sectors like equipment manufacturing, the council said.
China's National Development and Reform Commission fixed the price increase between National Phase 3 and Phase 4 oil products, and between Phase 4 and Phase 5, in September 2013 to help offset the upgrading cost to refiners by enabling them to charge higher prices for higher-standard output.
The guide price for raising specifications to Phase 4 from Phase 3 was fixed at Yuan 290/mt for gasoline and Yuan 370/mt for gasoil, and for raising to Phase 5 from Phase 4 fixed at Yuan 170/mt for gasoline and Yuan 160/mt for gasoil.
