The G7 countries have announced a decision to release 100 million barrels of oil to address the recent surge in fuel prices, particularly in the United States, beginning with a significant release of diesel.
President Donald Trump confirmed on social media that the diesel release would commence “immediately,” in line with the G7’s commitment to initiate a substantial release of diesel within the next 20 days, followed by the remainder over a period of four months.
Pressure mounts on Trump and the Republican Party to tackle the escalating prices as the November 3 midterm elections approach. The president’s popularity has declined amidst the ongoing Iran conflict and trade disputes, leading to increased oil and commodity prices in the U.S.
Fuel prices, including gas and diesel, have surged during the lengthy Iran conflict, a cost that Trump has justified by emphasizing the prevention of Iran from acquiring nuclear weapons. Despite his assurances that prices will drop post-conflict, there is uncertainty about when the conflict will conclude.
The average price of diesel in Canada stood at $2.63 per liter, with higher prices in certain cities like Vancouver, where it reached approximately $2.71 per liter. The elevated prices are impacting transport truck drivers and farmers who heavily rely on diesel to operate vehicles and machinery.
France, as the current G7 group president, disclosed the decision after virtual discussions led by President Emmanuel Macron. The G7 comprises Canada, France, Germany, Italy, Japan, the U.K., the U.S., and EU representatives.
The International Energy Agency will oversee the coordinated efforts to address the soaring fuel costs.
The statement detailed, “We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over 4 months, including a front-loaded substantial diesel release within the first 20 days by G7 members and partners.”
This release follows a previous announcement in March where IEA member nations pledged to release 426 million barrels of oil and products for market stabilization.
This decision also comes after Trump recently suggested the possibility of prohibiting diesel exports to alleviate gas prices for American consumers. However, experts warn that such a move could strain the global fuel market further, leading to a global price hike.
