The G7 countries have announced their decision to release 100 million barrels of oil, beginning with significant amounts of diesel, in response to recent record high fuel prices in the United States.
U.S. President Donald Trump conveyed on social media that the diesel release would take place “immediately,” reflecting a commitment made by the G7 to initiate a “frontloaded substantial release” of diesel within the upcoming 20 days and to distribute the remainder over the next four months.
With the midterm elections approaching on November 3, Trump and the Republican Party are under pressure to tackle the escalating prices.
The president is grappling with declining approval ratings, as the ongoing conflict in Iran and trade disputes have driven up U.S. costs for oil and other commodities.
Over the course of the eight-month-long conflict, gas and diesel prices have surged, a situation Trump has repeatedly stated is a justified cost to prevent Iran from acquiring nuclear capabilities. He maintains that prices will decrease after the conflict, despite no clear resolution in sight.
As of Thursday, the average cost of diesel in Canada was $2.63 per litre, with some cities, such as Vancouver, experiencing higher prices at approximately $2.71 per litre. These elevated costs are straining transport truck drivers and farmers who depend on diesel for their vehicles and machinery.
France, holding the rotating presidency of the G7, made this announcement following a videoconference led by French President Emmanuel Macron. The G7 consists of Canada, France, Germany, Italy, Japan, the U.K., the U.S., and representatives from the EU.
The International Energy Agency will oversee the initiative aimed at addressing the rising fuel prices.
According to the statement, “We will execute our commitments with a coordinated release through the IEA of 100 million barrels (MB) to commence immediately over four months, including a substantial initial diesel release within the first 20 days by G7 members and partners.”
This release follows a March declaration that member countries of the International Energy Agency would distribute 426 million barrels of oil and related products to stabilize the market.
This action also comes after Trump proposed last week the possibility of prohibiting diesel exports to lower gas prices for American consumers—a strategy experts warn could backfire, potentially straining an already pressured global fuel market and escalating prices worldwide.
However, the G7’s statement indicated that the group, which includes the United States, also agreed to refrain from imposing energy export restrictions on one another.
The statement affirmed, “We reiterate our commitment to avoid export restrictions on energy and energy products among G7 nations and urge all producers to refrain from implementing bans that could worsen market tensions.”
Trump spoke with Macron overnight regarding the necessity to tackle rising fuel prices and ensure the availability of petroleum products before leading the videoconference.
A recent AP-NORC poll revealed that a majority of American adults hold Trump responsible for the increasing prices, and his approval rating regarding economic management has reached a new low.