The G7 nations have reached an agreement to release 100 million barrels of oil, with a primary focus on diesel, in response to the recent surge in fuel prices in the United States. President Donald Trump announced on social media that the release of diesel will commence immediately, in line with the G7’s commitment to initiate a significant release of diesel within the next 20 days and distribute the remainder over a four-month period. Trump and the Republican Party are under pressure to address the escalating prices before the upcoming midterm elections on Nov. 3.
The president’s approval ratings have declined due to the impact of the conflict with Iran and trade disputes on U.S. oil and commodity prices. Despite the soaring gas and diesel prices during the prolonged conflict, Trump maintains that the cost is justified in preventing Iran from acquiring nuclear weapons. He assures that prices will decrease post-war, although a resolution to the conflict remains uncertain.
In Canada, the average diesel price stands at $2.63 per litre, with certain cities like Vancouver experiencing higher prices at around $2.71 per litre. These elevated prices are affecting transportation truck drivers and farmers who heavily rely on diesel for their vehicles and equipment.
France, currently holding the G7 presidency, announced the decision after a virtual meeting chaired by President Emmanuel Macron. The G7 countries, comprising Canada, France, Germany, Italy, Japan, the U.K., and the U.S., along with EU representation, will collaborate through the International Energy Agency to implement the release of 100 million barrels of oil.
This release follows a previous commitment made in March by the International Energy Agency member countries to release 426 million barrels of oil and products to stabilize the oil market. Additionally, Trump had recently suggested banning diesel exports in the U.S. as a measure to lower gas prices, a move that experts caution could strain the global fuel market and lead to further price increases worldwide.
Despite the measures taken, the G7 affirmed its commitment to not impose energy export restrictions on each other, urging all producers to avoid actions that could worsen market tensions. Trump discussed the need to tackle rising fuel prices and ensure petroleum product availability with Macron before leading the virtual conference. According to a recent AP-NORC poll, a majority of U.S. adults hold Trump responsible for the price hikes, with his approval rating on economic handling reaching a new low.