Beijing will introduce new fuel standards that municipal officials say are nearly on par with the European Union's Euro V on May 31.

All fuel sold by retailers in the Chinese capital will be required to adhere to the new standards, which are expected to reduce sulfur dioxide emissions from 50 to 10 milligrams per kilogram, according to the Beijing Municipal Environmental Protection Bureau.

The production of low-sulfur fuel will increase costs, said Fu Xingguo, an engineer at Sinopec Corp, China's largest oil refiner. However, the price of fuel will not be raised in the coming half year.

"The new Beijing V standard fuel will greatly reduce the amount of pollutants in the air, including PM 2.5 (particulate matter with a diameter smaller than 2.5 micrometers)," said Li Kunsheng, director of the bureau's vehicle management department. "The capital will become the first to meet the benchmark nationwide."

Li also said cleaner fuel will increase engine efficiency and reduce fuel consumption.

With more than 5 million automobiles in the city, car exhaust is definitely the major source of PM 2.5 in Beijing, Li said.