The G7 countries have reached an agreement to release 100 million barrels of oil, prioritizing diesel, in response to the recent surge in fuel prices in the United States. President Donald Trump announced the immediate release of diesel, in line with the G7’s commitment to begin with a substantial amount within the next 20 days and distribute the rest over four months.
Under pressure to address escalating prices before the Nov. 3 midterm elections, Trump and the Republican Party are striving to mitigate the impact of the Iran conflict and trade disputes, which have contributed to the rise in oil and commodity prices in the U.S. Despite the prolonged conflict, Trump maintains that the elevated prices are necessary to prevent Iran from acquiring nuclear weapons and assures the public that prices will eventually stabilize.
In Canada, the average price of diesel stands at $2.63 per liter, with some cities like Vancouver experiencing higher prices around $2.71 per liter. The increased costs are particularly burdensome for transport truck drivers and farmers who rely on diesel to operate their vehicles and machinery.
France, currently holding the G7 presidency, made the announcement following a videoconference led by President Emmanuel Macron. The G7 countries, including Canada, France, Germany, Italy, Japan, the U.K., and the U.S., along with EU representation, will coordinate with the International Energy Agency to execute the release of 100 million barrels of oil over the next four months.
This initiative follows a previous announcement in March by the International Energy Agency member countries to release 426 million barrels of oil and products to stabilize the oil market. Additionally, Trump’s recent contemplation of banning diesel exports to lower gas prices in the U.S. has raised concerns among experts about potential repercussions on the global fuel market and prices.
The G7 statement emphasized the commitment to avoid energy export restrictions within the group while urging all producers to refrain from imposing bans that could further escalate market tensions. Trump, after discussing rising fuel prices and petroleum product availability with Macron, chaired the videoconference. A recent poll indicates that a majority of U.S. adults hold Trump responsible for the surge in prices, leading to a decline in approval ratings for his handling of the economy.
