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The G7 nations said they agreed to release 100 million barrels of oil, starting with “substantial” amounts of diesel, after the fuel recently hit record prices in the United States.
U.S. President Donald Trump — facing pressure to address surging prices ahead of November’s midterm elections — also announced the action on Friday on social media.
“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately,” Trump posted on Truth Social.
The president faces lagging approval ratings as the Iran war and his trade battles have increased U.S. prices for oil and other goods.
Gas and diesel prices have soared during the eight-month-long war, a cost Trump has repeatedly said is worth it for making sure Iran does not obtain nuclear weapons. Trump has insisted prices will come down after the war, though there’s no end in sight.
The average price of diesel in Canada was $2.63 per litre as of Thursday, though prices were higher in some cities, like Vancouver, where a litre of the fuel cost about $2.71. Heightened prices put pressure on transport truck drivers and farmers, who rely on diesel to run vehicles and equipment.
France holds the rotating presidency of the G7 group and made the announcement in a statement released after videoconference talks that French President Emmanuel Macron presided over. The International Energy Agency will co-ordinate the effort to combat soaring fuel prices.
“We will implement our commitments with a co-ordinated release through the IEA of 100 million barrels (MB) to begin immediately over 4 months, including a front-loaded substantial diesel release within the first 20 days by G7 members and partners,” the statement said.
The move also comes after Trump last week floated the idea of banning diesel exports in hopes of bringing down gas prices for American drivers — a move experts caution could backfire, putting strain on an already-stretched global fuel market and further raising prices globally.
WATCH | High diesel prices raise the cost of harvest for some farmers:
High diesel prices mean an expensive harvest for P.E.I. farmers
The price of diesel continues to climb and farmers on the Island are feeling it. They’re getting hit particularly hard now as their machines roll through the fall harvest. CBC’s Connor Lamont explains.
But the G7 statement said the group, which includes the United States, also agreed not to limit energy exports to each other.
“We reaffirm our commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to refrain from imposing bans that could exacerbate market tensions,” it said.
Trump had a conversation overnight with Macron about the need to address rising fuel prices and the availability of petroleum products, according to the French Embassy in the U.S., before chairing the videoconference.
A new AP-NORC poll found that a majority of U.S. adults blame Trump for higher prices, and approval on his handling of the economy hit a new low.