The G7 countries have announced a plan to release 100 million barrels of oil, with a focus on significant diesel amounts, in response to record-high fuel prices in the United States. President Donald Trump, in a social media post, confirmed the immediate release of diesel, as outlined by the G7 commitment for a rapid and substantial diesel release within the next 20 days, followed by the remainder over a four-month period. The move comes as Trump and the Republican Party face mounting pressure to tackle escalating prices prior to the upcoming Nov. 3 midterm elections.
Amidst ongoing conflicts such as the Iran war and trade disputes, the U.S. has witnessed a surge in oil and commodity prices, leading to soaring gas and diesel costs. Trump has justified these price hikes as necessary to prevent Iran from acquiring nuclear weapons, claiming that prices will stabilize post-war, although the duration of the conflict remains uncertain.
As of Thursday, the average diesel price in Canada stood at $2.63 per litre, with some cities like Vancouver experiencing even higher rates, around $2.71 per litre. These elevated prices are placing strain on transport truck drivers and farmers who heavily rely on diesel to operate their vehicles and machinery.
France, currently holding the G7 presidency, made the announcement following virtual discussions presided over by French President Emmanuel Macron. The G7 member countries, along with EU representation, have enlisted the International Energy Agency to coordinate efforts aimed at addressing the soaring fuel costs.
The decision to release 100 million barrels of oil over four months, with an emphasis on an immediate substantial diesel release within the first 20 days, follows a previous commitment in March by the International Energy Agency member nations to release 426 million barrels of oil and products to stabilize the oil market.
Additionally, the G7 reiterated its pledge to avoid imposing energy export restrictions among member nations, urging all producers to refrain from implementing bans that could further exacerbate market tensions. Trump’s recent discussions with Macron highlighted the urgency of addressing rising fuel prices and ensuring petroleum product availability, preceding his leadership of the G7 videoconference.
A recent AP-NORC poll revealed that a majority of U.S. adults hold Trump responsible for the escalating prices, with approval ratings on his economic management reaching a new low.