G7 to release 100 million barrels as record US diesel prices squeeze Trump

The G7 has agreed to release 100 million barrels of oil, with diesel supplies frontloaded from the start. The move aims to cool surging US fuel prices as political pressure mounts on Donald Trump.

In Short

• Diesel supplies will be frontloaded within 20 days to ease shortages
• IEA will coordinate the release programme across G7 members and partners
• US diesel prices reached records with the national average at USD 6.37

The Group of Seven industrial nations said they had agreed to release 100 million barrels of oil over four months, with a substantial amount of diesel to be released in the first 20 days, after diesel prices recently hit record highs in the United States. President Donald Trump said the diesel release would happen "immediately".

The move comes as Trump and his Republican Party face pressure over rising prices ahead of November's midterm elections. A new AP-NORC poll found that a majority of US adults blame Trump for higher prices, while approval of his handling of the economy has fallen to a new low.

Trump announced the action on social media on Friday, saying, "Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately." The president has been dealing with low approval ratings as the Iran war and his trade battles have pushed up US prices for oil and other goods.

Gas prices in the US and elsewhere have risen sharply during the eight-month-long war, which Trump has repeatedly said is a price worth paying to ensure Iran does not obtain nuclear weapons. He has also insisted that prices will come down after the war, though there is no end in sight. According to AAA, the national average price of a gallon of diesel in the US stood at USD 6.37 on Friday after touching a record USD 6.52 on September 22.

According to the French Embassy in the US, Trump spoke overnight with French President Emmanuel Macron, who is chair of the G7, about the need to address rising fuel prices and the availability of petroleum products. Macron then chaired a video conference of G7 leaders on Friday to discuss the issue. France, which holds the rotating presidency of the G7, later announced the decision in a statement issued after the talks.

The statement said the International Energy Agency would co-ordinate the effort to tackle rising fuel prices. "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," it said.

The poll added to pressure on Trump, who has become increasingly frustrated by what he sees as a gap between his record and public opinion. This week, he gave himself an A-plus for his work on the economy but said, "we're doing an extremely poor job of promotion." The announcement by the G7 is aimed at easing fuel prices quickly, with diesel supplies set to be released first.

With PTI Inputs

- Ends