The G7 countries have announced their decision to release 100 million barrels of oil, with a particular focus on releasing significant amounts of diesel due to the recent surge in fuel prices in the United States.
President Donald Trump confirmed the immediate release of diesel on social media, in line with the G7’s commitment to starting with a substantial diesel release within 20 days, followed by the remainder over the next four months. The move comes as pressure mounts on Trump and the Republican Party to address escalating prices ahead of the upcoming midterm elections.
The president’s approval ratings have been declining amidst the Iran conflict and trade disputes, which have contributed to the rise in oil and commodity prices in the U.S. Despite the prolonged war driving up gas and diesel prices, Trump maintains that the costs are justified in preventing Iran from acquiring nuclear weapons.
In Canada, the average diesel price stood at $2.63 per liter, varying across cities like Vancouver where it reached around $2.71 per liter. These heightened prices are placing strain on truck drivers and farmers who rely on diesel for their vehicles and machinery operations.
The G7’s announcement was made by France, the current holder of the group’s rotating presidency, following a videoconference led by French President Emmanuel Macron. The International Energy Agency will oversee the coordinated efforts to address the soaring fuel prices.
The decision to release 100 million barrels of oil over four months, with an initial substantial diesel release within the first 20 days, was made in response to the March agreement among International Energy Agency member countries to release 426 million barrels of oil and products to stabilize the market.
Trump’s recent contemplation of a diesel export ban in the U.S. to lower domestic gas prices has raised concerns among experts, who warn of potential negative repercussions on the global fuel market and further price increases worldwide.
Despite the release, the G7 countries, including the U.S., have committed not to impose energy export restrictions on one another, emphasizing the importance of avoiding measures that could worsen market tensions.
Following discussions with Macron on addressing fuel price hikes and petroleum product availability, Trump chaired the videoconference. A recent AP-NORC poll revealed that a majority of U.S. adults hold Trump responsible for the price hikes, with his approval rating on economic management reaching a new low.