China Plans to Raise Standards Won't Affect the Probability

China's plan to increase fuel standards for diesel and gasoline won't affect Cnooc Ltd.'s (CEO) profitability as better oil products will lead to higher prices, Cnooc Chairman Wang Yilin said Tuesday.

The head of China's largest offshore oil producer made the remarks on the sidelines of the National People's Congress, China's annual legislative meetings.

His comments come as China's State Council, the country's cabinet, issued a statement last month that pledged to raise fuel standards over the next four years in order to improve air quality. Leaders in the world's second-largest economy are grappling with intensifying public pressure to solve the nation's mounting pollution problems.

The government said it would ratchet up national fuel standards to levels similar to those currently found in the U.S. and Europe by the end of 2017.

A recent spate of pollution in northern China has put the country's massive state-controlled refining industry under the spotlight. The Chinese Academy of Sciences this week blamed motor vehicles for contributing nearly one-quarter of Beijing's PM2.5 levels.

Separately, Mr. Wang said Cnooc has no plans to boost its production target yet following the resumption of its Penglai field.