The Group of Seven (G7) countries have announced plans to release 100 million barrels of oil, with a significant focus on diesel, in response to the recent surge in fuel prices in the United States.
President Donald Trump confirmed on social media that the immediate release of diesel will kick off the initiative, in line with the G7’s commitment to a prompt and substantial distribution of diesel within the next 20 days, followed by a gradual release over four months.
Trump and the Republican Party are under pressure to address the escalating prices ahead of the midterm elections on November 3rd.
The president is facing declining approval ratings as a result of the conflict with Iran and ongoing trade disputes, which have contributed to the rise in oil and commodity prices in the U.S.
Gasoline and diesel prices have surged during the eight-month-long conflict, a situation Trump has justified as necessary to prevent Iran from acquiring nuclear weapons. Despite his assurances that prices will decrease post-war, there is currently no clear end in sight.
The average price of diesel in Canada stood at $2.63 per liter as of Thursday, with higher prices recorded in certain areas such as Vancouver, where a liter of diesel cost around $2.71. The increased prices are putting strain on transport truck drivers and farmers who heavily rely on diesel for running their vehicles and equipment.
France, currently holding the G7 presidency, made the announcement following virtual discussions chaired by French President Emmanuel Macron. The G7 comprises Canada, France, Germany, Italy, Japan, the U.K., and the U.S., with EU representation included.
The International Energy Agency will oversee the coordinated effort to combat the soaring fuel prices.
“We will fulfill our commitments by collaborating through the International Energy Agency to release 100 million barrels over a span of 4 months, starting immediately. This includes a significant upfront release of diesel within the first 20 days by G7 members and partners,” stated the announcement.
This decision follows a previous announcement in March where member countries of the International Energy Agency pledged to release 426 million barrels of oil and related products to stabilize the oil market.
The move comes in the wake of Trump’s recent consideration of banning diesel exports to lower gas prices for American consumers, a move experts warn could have adverse effects by straining the global fuel market further and driving up prices worldwide.
Dedicated to delivering trustworthy news and meaningful stories with integrity and clarity. We cover local and international events to keep our audience informed, aware, and connected to the world.
Contact Us
Corniche El Nil, Garden City, Cairo 11511, Egypt
Email: director@dailyegyptpost.com
© All Rights Reserved by Daily Egypt Post