G7 countries have agreed to release up to 100 million barrels of oil from strategic reserves over four months in a coordinated effort to bring down soaring energy prices, with a particular focus on diesel.
The release will be coordinated by the International Energy Agency (IEA), with a substantial amount of diesel to be made available within the first 20 days.
The G7 countries stated this in a statement released following a meeting of the bloc through video conference to discuss global diesel supply amid skyrocketing fuel prices and escalating trade friction between the United States and Europe.
French President Emmanuel Macron, who currently holds the G7 presidency, said in a social media post that the countries had agreed to work in a coordinated manner to ease pressure on prices of petroleum products, particularly diesel.
During the meeting, the G7 leaders also decided to make production more flexible to increase refinery output and pledged not to restrict trade in energy and oil products between partner countries.
The move comes as US President Donald Trump threatened to halt American diesel exports if European countries do not release fuel from their strategic reserves.
High domestic fuel costs are posing a significant political challenge for the Republican Party ahead of next month’s midterm congressional elections.
European Commission officials strongly rejected the proposed U.S. diesel export ban, warning that it would damage trust in the US as a reliable partner.
Global supply has tightened due to the ongoing US war with Iran. Additionally, Russia extended its diesel export ban following Ukrainian damage to its refineries, and Chinese refiners suspended exports to preserve domestic supplies.
Meanwhile, average UK diesel prices have hit a record high, reaching 2 pounds a litre for the first time. However, UK Transport Minister Keir Mather has said Britain’s supply of diesel is robust and “resilient”, and the country has a wide range of sources.