The G7 nations have announced their agreement to release 100 million barrels of oil, with a focus on substantial amounts of diesel, in response to the recent surge in fuel prices in the United States. President Donald Trump confirmed the immediate release of diesel through social media, in line with the G7’s commitment to an initial frontloaded substantial release within 20 days, followed by the remaining amount over a four-month period. Trump and the Republican Party are under pressure to address the escalating prices before the upcoming Nov. 3 midterm elections.
The president is facing declining approval ratings as a result of the Iran conflict and trade disputes, which have contributed to the increased costs of oil and other commodities in the U.S. Gas and diesel prices have spiked during the eight-month-long conflict, a situation Trump believes is necessary to prevent Iran from acquiring nuclear weapons. Despite his assurances that prices will decrease post-conflict, there is currently no clear end in sight.
In Canada, the average price of diesel stood at $2.63 per litre as of Thursday, with some cities like Vancouver experiencing even higher prices at around $2.71 per litre. These heightened prices are putting strain on transport truck drivers and farmers who depend on diesel for their vehicles and equipment.
France, holding the G7 group’s rotating presidency, made the announcement following a videoconference led by French President Emmanuel Macron. The G7 countries, including Canada, France, Germany, Italy, Japan, the U.K., and the U.S., along with EU representation, will collaborate with the International Energy Agency to implement the release of 100 million barrels of oil over the next four months, starting immediately. This initiative follows a previous commitment made in March by IEA member countries to release 426 million barrels of oil and products to stabilize the oil market.
The decision also comes after Trump recently suggested the idea of banning diesel exports to lower gas prices for American consumers, a move that experts warn could have adverse effects on the global fuel market and further elevate prices worldwide. The G7 statement clarified that the group, including the U.S., has agreed not to restrict energy exports among themselves and has called on all producers to avoid imposing bans that could worsen market tensions.
Prior to chairing the videoconference, Trump had discussed the urgency of addressing rising fuel prices and ensuring the availability of petroleum products with Macron, as confirmed by the French Embassy in the U.S. A new AP-NORC poll revealed that a majority of U.S. adults attribute the higher prices to Trump, with his approval rating on economic matters reaching a new low.