The G7 countries have announced their decision to release 100 million barrels of oil to address the recent surge in fuel prices in the United States, with a focus on releasing significant amounts of diesel. U.S. President Donald Trump confirmed on social media that the diesel release would commence “immediately,” in line with the G7’s commitment to start with a substantial release of diesel within the next 20 days and distribute the rest over four months.
President Trump and the Republican Party are under pressure to tackle the escalating prices before the Nov. 3 midterm elections. The president’s approval ratings have declined due to the impact of the Iran conflict and trade disputes on oil and commodity prices in the U.S.
Gas and diesel prices have significantly risen during the eight-month-long war, a situation Trump has justified as necessary to prevent Iran from acquiring nuclear weapons. He has assured that prices will stabilize post-war, although there is uncertainty about when the conflict will end.
In Canada, the average diesel price stood at $2.63 per liter, with some cities like Vancouver experiencing even higher prices at around $2.71 per liter. The increased costs are putting pressure on transport truck drivers and farmers who heavily rely on diesel for their vehicles and equipment.
France, currently holding the G7 presidency, made the announcement following a videoconference overseen by French President Emmanuel Macron. The G7 member nations, along with EU representation, have entrusted the International Energy Agency with coordinating efforts to address the soaring fuel prices.
The joint commitment involves a coordinated release of 100 million barrels of oil over four months, with an upfront substantial diesel release within the first 20 days by G7 members and partners. This decision follows a previous announcement in March where International Energy Agency member countries agreed to release 426 million barrels of oil and products to stabilize the oil market.
Additionally, the G7 countries, including the U.S., have agreed not to impose energy export restrictions on each other. They have urged all energy producers to refrain from implementing bans that could worsen market tensions.
President Trump discussed the rising fuel prices and petroleum product availability with President Macron before leading the videoconference. A recent AP-NORC poll revealed that a majority of U.S. adults hold Trump responsible for the price hikes, leading to a decline in approval ratings for his handling of the economy.