G7 Agrees to Release 100 Million Barrels From Strategic Reserves to Combat Soaring Fuel Prices
The G7 nations, coordinated by the International Energy Agency, will release 100 million barrels of oil and fuel products from strategic reserves over four months. The effort prioritizes a substantial diesel release within the first 20 days as record prices strain transport and agricultural sectors in the U.S. and Canada.
G7 nations have agreed to release 100 million barrels of oil and fuel products from their strategic stockpiles over the next four months to combat soaring energy prices driven by the ongoing Iran war. The International Energy Agency (IEA) will coordinate the release effort, which begins immediately with a "front-loaded substantial" diesel release within the first 20 days. The statement did not specify the exact split between diesel and crude oil in the 100 million barrel release.
France currently holds the rotating presidency of the G7, which includes the United States, Canada, France, Italy, Germany, Britain, and Japan. French President Emmanuel Macron presided over videoconference talks that led to the announcement. U.S. President Donald Trump called into the G7 meeting to negotiate the release of European diesel stockpiles. He later announced the action on social media, stating Europe had agreed to release heavily stocked diesel oil.
The decision follows threats by Trump to ban U.S. diesel exports to lower domestic gas prices ahead of midterm elections. However, the G7 statement reaffirmed a commitment to refrain from imposing export restrictions on energy between member countries. An AP-NORC poll found that a majority of U.S. adults blame Trump for higher prices, and his approval rating on handling the economy hit a new low.
Record-high fuel costs are causing significant economic pressure on transport and agricultural sectors. Military strikes on oil refinery infrastructure in the Middle East and Russia have severely impacted diesel supplies. In the United States, the average price of diesel was $6.37 per gallon on Friday, having hit a record $6.52 on Sept. 22. Heightened diesel prices continue to put pressure on transport truck drivers and farmers.
In Canada, retail diesel prices climbed to record highs of up to $2.75 per litre, triggering trucker protests. As of Thursday, the average price of diesel in Canada was $2.63 per litre, with some cities like Vancouver seeing prices around $2.71 per litre. Gasoline prices in Canada averaged around $1.72 per litre according to CAA data. Soaring fuel prices threaten broader economic stability and household well-being across both nations.