France’s Emmanuel Macron (right) speaks alongside his economics minister Roland Lescure following a videoconference with G7 leaders at the Élysée Palace on 2 October. Photograph: Jeanne Accorsini/Sipa/ShutterstockView image in fullscreenFrance’s Emmanuel Macron (right) speaks alongside his economics minister Roland Lescure following a videoconference with G7 leaders at the Élysée Palace on 2 October. Photograph: Jeanne Accorsini/Sipa/ShutterstockG7 to release up to 100m barrels of emergency oil and diesel reservesLeaders agree a coordinated drawdown within four months as rising prices put pressure on households and economies
Leaders of G7 nations are to release up to 100m barrels of their emergency diesel and crude oil stockpiles after coming under pressure from Donald Trump to ease surging fuel prices.
The drawdown of reserves from some of the world’s largest economies will be coordinated by the International Energy Agency (IEA) and will take place within four months, according to France’s president, Emmanuel Macron.
Macron is the current chair of the G7 – which also includes the US, UK, Germany, Italy, Canada and Japan – and he confirmed the move on Friday following a leaders’ video meeting.
Macron said G7 nations wanted to “work in a coordinated manner to help bring down the prices of petroleum products, particularly diesel”.
9:37Diesel export ban: will Trump push global energy prices even higher? - The LatestEuropean countries had come under pressure from the White House in recent days to release emergency supplies or face a US diesel export ban. Trump has said he is considering stopping diesel exports to help lower domestic fuel prices before the US midterm elections in November.
Macron said G7 members and partners would front-load a substantial diesel release within the first 20 days.
He added that G7 leaders had agreed to make production more flexible so refineries can work at their maximum capacity, and that they would not take any measures to “restrict the exchange of energy and petroleum products between partner countries”.
“We have all committed together to releasing these strategic reserves in the proportions I mentioned, with a focus on diesel, and we are all committed to ensuring there are no export bans, and President Trump, in particular, was very clear on this point,” Macron said.
The G7 leaders said they would discuss the “possibility of additional diesel releases as necessary” in the coming days.
A US export ban would have presented a considerable challenge for Europe, which produces about 70% of the diesel it consumes from domestic refineries, but relies on imports to make up the shortfall. Oil analysts had also raised concerns that competition for diesel cargoes on the global market would push prices even higher.
The average price of diesel climbed to a record high of £2 a litre on UK forecourts on Friday, putting more pressure on motorists. The cost of filling up an average family car is now £110, according to the RAC motoring group, nearly £32 more than before the Iran war.
Simon Williams, the head of policy at the RAC, said: “This is a pump price threshold that no one wanted to cross.”
The RAC figures measure the average cost of fuel, but in reality many forecourts have been selling diesel above £2 a litre for some time.
Trump said in a post on his Truth Social platform that he welcomed the release of more reserves: “Europe has just agreed to release a massive amount of their heavily stocked diesel oil. The process will begin immediately.”
However, Macquarie Group’s Walt Chancellor said release of the reserves would not address the underlying problem in the US.
“The core issue the US faces is not a diesel problem. Nor is it a refined product problem. It may not even be a petroleum problem. It is a global energy problem,” he said, according to CNBC.
“So what is the solution then? In short, more oil through the strait of Hormuz and out of the Middle East. Anything short of that is really just shuffling deck chairs,” he added.
The IEA, the world’s energy watchdog, ordered the largest release of government oil reserves in its history in March when it agreed to release 400m barrels of emergency crude, to help calm the oil price shock sparked by the US-Israeli attacks on Iran.
The intervention represented a third of the group’s total government stockpiles and was more than double the release of 182m barrels of oil made in 2022 following Russia’s invasion of Ukraine.
Brent crude oil was trading at just above $100 a barrel on Friday, compared with about $72 before the Iran war started.
