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Fu Chengyu, Chairman of Sinopec, speaks at a panel discussion during the third Session of the 12th National Committee of the CPPCC (Chinese People's Political Consultative Conference) in Beijing, March 8, 2015. [Photo/IC]

Oil standards

During a recent interview, the head of China Petrochemical Corp (Sinopec) said that it is the government, not oil producers, that controls the standards of petroleum in China.

When asked whether petroleum is the main cause of smog, Fu Chengyu, chairman of the oil giant and a member of the CPPCC, said oil accounts for only 18 percent of China's energy, while coal accounts for 66 percent.

Fu told Beijing Times that Sinopec is capable of producing cleaner oil, but the government has the final say in standards. "Provincial level governments decide which standard they will take, which means there are several different oil standards in China", Fu said. "Some people want to lower the price of oil, so they choose lower-standard products.

"The company came into the spotlight after a documentary about smog was released online by Chai Jing, a former CCTV reporter. In the film, Chai criticized China's two most powerful state-owned oil companies, namely Sinopec and CNPC for resisting tougher fuel standards and worsening air quality.