The G7 countries have announced a plan to release 100 million barrels of oil, with an initial focus on diesel, in response to the recent surge in fuel prices in the United States. President Donald Trump confirmed the immediate release of diesel, in line with the G7’s commitment to a rapid and substantial release within the next 20 days, followed by a phased release over four months. The move comes as Trump and the Republican Party are under pressure to address escalating prices ahead of the midterm elections on November 3.
The surge in prices has been attributed to various factors, including the Iran conflict and trade disputes initiated by the U.S., which have pushed up oil and commodity prices. Despite the escalating costs, Trump has defended the actions, stating that the price hikes are necessary to prevent Iran from acquiring nuclear weapons. He has assured that prices will stabilize post the conflict, although the resolution remains uncertain.
In Canada, the average price of diesel stood at $2.63 per liter, with some cities like Vancouver witnessing even higher prices at around $2.71 per liter. This increase in prices has put additional strain on transport truck drivers and farmers who heavily rely on diesel to operate their vehicles and machinery.
The announcement regarding the oil release was made by France, the current G7 presidency holder, following a virtual meeting chaired by French President Emmanuel Macron. The International Energy Agency will oversee the coordinated efforts to address the soaring fuel prices. The G7 statement emphasized the commitment to release 100 million barrels of oil over four months, with an immediate substantial diesel release within the first 20 days, involving G7 members and partners.
This decision follows a previous announcement in March where the International Energy Agency member countries pledged to release 426 million barrels of oil and products to stabilize the oil market. Additionally, Trump had recently suggested the possibility of banning diesel exports to mitigate gas prices for American consumers, a move that experts caution could have adverse effects on the global fuel market and further escalate prices worldwide.
The G7 statement also highlighted the agreement among member countries, including the United States, not to impose restrictions on energy exports to each other. The group reiterated its commitment to refraining from export limitations on energy products and urged all producers to avoid actions that could worsen market tensions.
Trump’s conversation with Macron prior to the videoconference underscored the discussions on addressing rising fuel prices and ensuring the availability of petroleum products. A recent AP-NORC poll revealed that a majority of U.S. adults hold Trump responsible for the price hikes, with his approval ratings on economic matters reaching a new low.