Washington: G7 nations have agreed to release 100 million barrels of oil and petroleum products through a coordinated International Energy Agency (IEA) effort over 4 months, including a substantial amount of diesel during the first 20 days, amid surging fuel prices.
The decision was announced by France after G7 leaders held a video conference chaired by French President Emmanuel Macron, whose country currently holds the group's rotating presidency.
“We will implement our commitments with a coordinated release through the IEA of 100 million barrels (MB) to begin immediately over 4 months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners,” the G7 leaders said in their statement.
The announcement comes as diesel prices in the United States have reached record levels and global energy markets face continued disruption linked to the Iran war and other supply constraints.
US President Donald Trump welcomed the decision and said the diesel release would begin immediately.
Trump had spoken with Macron overnight about rising fuel prices and the availability of petroleum products before the French president convened the G7 call. European governments had also been discussing the release of emergency diesel stocks following pressure from Washington.
The G7 move comes ahead of the November US midterm elections, with the Trump administration facing pressure over rising living costs.
An AP-NORC poll released on October 1 found that 26% of US adults approved of Trump's handling of the economy, while 65% said his policies were responsible for higher-than-usual prices. The poll was conducted from September 24-28 among 2,140 adults and had a margin of sampling error of 2.9 percentage points.
The national average price of diesel in the US stood at $6.37 a gallon on Friday, according to AAA, after reaching a record $6.52 on September 22, according to AP.
Higher energy costs have become a significant concern for US consumers as the conflict involving Iran continues to affect global oil supplies and prices.
The AP-NORC poll found that about half of US adults were extremely or very concerned about being able to afford to fill their vehicle's tank, up from 39% in July.
The IEA will coordinate the release over 4 months. The first phase will prioritise diesel, with a substantial volume to be released within the first 20 days.
The agreement covers oil and other petroleum reserves, with G7 members and partner countries participating in the coordinated effort. The leaders also agreed on measures aimed at increasing refinery output and maintaining the flow of energy products between participating countries.
The scale of the release is intended to add supply to global markets at a time when disruptions have pushed up the cost of crude and refined products. Its eventual effect on retail fuel prices will depend on the timing of releases, refinery capacity and wider developments in the global oil market.
(With inputs from AP, Reuters)