The G7 countries have collectively decided to release 100 million barrels of oil, with initial emphasis on significant quantities of diesel, in response to the recent surge in fuel prices in the United States. President Donald Trump announced on social media that the diesel release would commence “immediately,” aligning with the G7’s commitment to kick off a “frontloaded substantial release” of diesel within the next 20 days followed by the remaining amount over a four-month period. Trump and his Republican Party are under pressure to tackle the escalating prices as the November 3 midterm elections approach.
The president is facing declining approval ratings as the conflict with Iran and ongoing trade disputes have led to higher oil and commodity prices in the U.S. Gasoline and diesel costs have spiked during the prolonged conflict, which Trump has justified as necessary to prevent Iran from acquiring nuclear weapons. He has expressed confidence that prices will drop post-conflict, although a resolution seems distant.
In Canada, the average diesel price stood at $2.63 per liter as of Thursday, though certain cities like Vancouver saw prices reach around $2.71 per liter. The elevated prices are adding strain on truck drivers and farmers who depend on diesel for their vehicles and machinery.
France, currently holding the G7 presidency, made the announcement following discussions led by French President Emmanuel Macron in a virtual meeting. The G7 consists of Canada, France, Germany, Italy, Japan, the U.K., and the U.S., along with EU representation. The International Energy Agency will oversee the coordinated release of 100 million barrels of oil to counter the soaring fuel costs.
This move follows a previous announcement in March by the International Energy Agency member countries to release 426 million barrels of oil and products to stabilize the oil market. In addition, Trump recently floated the idea of prohibiting diesel exports in a bid to lower gas prices for American drivers, a strategy warned against by experts who fear it could strain the global fuel market further and drive prices up worldwide.
Despite the diesel release initiative, the G7 affirmed their commitment to refrain from imposing energy export restrictions on each other. They urged all energy producers to avoid implementing bans that could worsen market tensions. Trump discussed the necessity of addressing rising fuel prices and petroleum product availability with Macron before leading the videoconference. Recent polling indicates that a majority of U.S. adults hold Trump responsible for the price hikes, with his economic handling approval reaching a new low.