The G7 countries have announced their decision 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 took to social media to confirm that the release of diesel would commence immediately. The G7 commitment includes an initial significant release of diesel within the next 20 days, followed by the remaining amount over four months.
Trump and the Republican Party are under pressure to address the escalating prices ahead of the upcoming Nov. 3 midterm elections.
The president’s approval ratings have been declining as a result of the conflict with Iran and trade disputes, which have led to higher oil and commodity prices in the U.S.
Amid the ongoing eight-month-long war, gas and diesel prices have seen a significant increase. Trump has justified these costs by emphasizing the importance of preventing Iran from acquiring nuclear weapons. He remains optimistic that prices will decrease post-war, although a resolution is not yet in sight.
As of Thursday, the average diesel price in Canada stood at $2.63 per liter, with higher prices observed in some cities like Vancouver, where it reached approximately $2.71 per liter. The elevated prices are putting strain on transport truck drivers and farmers who heavily rely on diesel for their vehicles and equipment.
France, currently holding the revolving presidency of the G7, made the announcement following virtual talks chaired by French President Emmanuel Macron. The G7 consists of Canada, France, Germany, Italy, Japan, the U.K., the U.S., and EU representation.
The International Energy Agency will oversee the coordinated effort to tackle the soaring fuel prices.
The statement declared, “We will fulfill our commitments by jointly releasing 100 million barrels (MB) through the IEA, starting immediately over a span of 4 months. This includes an early and substantial diesel release within the first 20 days by G7 members and partners.”
This release follows an earlier March announcement where member countries of the International Energy Agency pledged to release 426 million barrels of oil and related products to stabilize the oil market.
This decision comes after Trump recently floated the idea of banning diesel exports in the U.S. to alleviate gas prices for American consumers, a move that experts warn could have adverse effects, straining the global fuel market further and leading to increased prices worldwide.
