Singapore Mandates Use of ULSD

16 June 2005

Singapore’s National Environment Agency (NEA) has mandated the use of ultra low sulfur diesel (ULSD) fuel beginning 1 Dec 2005.

The adoption of the 50-ppm-sulfur fuel is in preparation for Singapore’s implementation of Euro 4 emission standards for diesel vehicles in October 2006. Singapore’s current diesel fuel standard is at 500 ppm of sulfur.

The level of PM_2.5 in the air in Singapore is increasing. In 2004, PM_2.5 levels averaged 21µg/m³—exceeding the 15µg/m³ standard by 40%.

According to the NEA, diesel vehicles, which constitute 20% of the vehicular population, contribute about 50% of the total PM_2.5 emissions.

It has been estimated that PM 2.5 emissions from Euro IV diesel vehicles are 70 per cent lower than those from existing Euro II vehicles. With the number of vehicles on the road rising, there is a need for more stringent emission standards so that Singapore's ambient air quality can be maintained.

Today’s announcement will give everyone affected ample time to adapt, in particular, oil companies who will have to replace Euro 2 diesel with ULSD at all service stations

—Loh Ah Tuan, NEA Director-General, Environmental Protection

To encourage diesel vehicle owners to switch to Euro 4-compliant vehicles, the Government introduced a special incentive package in March 2004 when it announced the decision to adopt the Euro 4 emission standards.

A study for the Asian Development Bank (ADB) in 2003 determined that among Asian nations, Singapore had refineries with the second lowest incremental cost (second only to Japan) for producing ULSD.