Tougher regulations on diesel products have been brought forward by one year
Under increasing pressure to curb pollution, China's State Councils have brought forward National V regulations for diesel products from 2017 to 2016. In late 2013, the State Councils all put in place a three-year period to allow refineries to make the necessary upgrades to transition from National IV to V oils, a period that has now been contracted to just two years.
According to the National Standards Commisssion, even a basic refinery upgrade can cost 1bn yuan ($160m putting pressure on China's state-owned giants. Last year, PetroChina report losses of 23.56bn yuan ($3.8bn) from its refining business and has lost more than 150bn ($24bn) over the last four years.
The new standards will also put pressure on the nation's auto industry, which will need to invest in new technologies to accommodate the regulatory change.
Some cities, such as Beijing, Guangdong, Shanghai and Jiangsu have already begun implementing the rigorours new standards. Beijing had started putting National V regulations into effect as much as three years ago.
Studies have shown the National V standards can lead to a reduction in nitrogen oxide and sulphur of 25% and 80% respectively, and can lower a car's overall emissions by 10-15%. The new standard also requires that sulphur content reaches no more than 10ppm, putting on a par with current standards in the EU.