Key facts
- G7 nations will release up to 100 million barrels of oil and diesel reserves.
- The coordinated release will occur within four months, with a substantial diesel release in the first 20 days.
- The move aims to lower fuel prices, especially for diesel, and stabilize energy supplies.
- G7 leaders agreed to refrain from export restrictions on energy products among member countries.
- US President Donald Trump had threatened a diesel export ban to lower domestic prices.
G7 leaders have agreed to release up to 100 million barrels of emergency diesel and crude oil reserves within four months to combat surging fuel prices. The coordinated drawdown, managed by the International Energy Agency (IEA), aims to ease pressure on petroleum product costs, particularly diesel.
French President Emmanuel Macron, current chair of the G7, confirmed the decision on Friday following a video meeting of leaders. The move comes amid pressure from US President Donald Trump, who had considered a US diesel export ban to lower domestic prices ahead of the US midterm elections. Macron stated that G7 members and partners would prioritize a substantial diesel release within the first 20 days and committed to avoiding export bans.
European countries had been urged by the White House to release emergency supplies. A US export ban would have significantly challenged Europe, which relies on imports to meet its diesel demand. Analysts had warned that increased competition for diesel on the global market could further inflate prices.
The average price of diesel in the UK hit a record high of £2 per liter on Friday, with the cost to fill an average family car now at £110, according to the RAC. Some forecourts have been selling diesel above £2 per liter for some time.
Donald Trump welcomed the G7 decision on his Truth Social platform. However, Walt Chancellor, an analyst at Macquarie Group, said the issue was global energy supply, not just US diesel exports.