The G7 countries have reached an agreement to release 100 million barrels of oil, with a focus on diesel, in response to the recent surge in fuel prices in the United States. President Donald Trump confirmed the immediate release of diesel following the G7’s commitment to a substantial initial release within 20 days, followed by a phased release over the next four months. The decision comes as Trump and the Republican Party face mounting pressure to address escalating prices ahead of the upcoming midterm elections.
The surge in prices has been attributed to ongoing conflicts such as the Iran war and trade disputes initiated by the president. Despite the rise in gas and diesel prices during the eight-month-long conflict, Trump maintains that the costs are justifiable to prevent Iran from acquiring nuclear weapons. He has expressed confidence that prices will stabilize post-war, although the duration of the conflict remains uncertain.
In Canada, the average diesel price stood at $2.63 per liter, with higher prices observed in cities like Vancouver, where it reached around $2.71 per liter. The increased prices are impacting transport truck drivers and farmers who heavily rely on diesel to operate their vehicles and machinery.
The announcement regarding the oil release was made by France, the current G7 presidency holder, following a virtual meeting chaired by French President Emmanuel Macron. The International Energy Agency will oversee the coordinated effort to address the soaring fuel prices through the release of 100 million barrels over four months, with an initial substantial release of diesel within the first 20 days by G7 members and partners.
This decision follows a previous commitment made in March by International Energy Agency member countries to release 426 million barrels of oil and products to stabilize the oil market. Additionally, Trump recently hinted at the possibility of banning diesel exports in the United States to alleviate gas prices for American consumers, a move that experts warn could further strain the global fuel market and elevate prices worldwide.
As part of the agreement, the G7 countries, including the United States, have agreed not to impose restrictions on energy exports to each other, emphasizing the importance of refraining from actions that could worsen market tensions. A recent poll indicates that a majority of U.S. adults hold Trump responsible for the rising fuel prices, with his approval ratings on economic matters reaching a new low.