The G7 countries have collectively agreed to release 100 million barrels of oil, with a focus on significant quantities of diesel, in response to the recent surge in fuel prices in the United States. In a move prompted by mounting pressure ahead of the upcoming midterm elections, U.S. President Donald Trump also announced the decision on social media.
Trump’s announcement on Truth Social stated, “Europe has just agreed to release a substantial amount of their well-stocked Diesel Oil. The process will commence without delay.” The president, facing declining approval ratings amidst the Iran conflict and ongoing trade disputes leading to increased oil and commodity prices in the U.S., has maintained that the current escalated prices are justified to prevent Iran from acquiring nuclear weapons. He expressed confidence that prices would eventually decrease post-conflict, although a resolution remains uncertain.
As of Thursday, the average diesel price in Canada stood at $2.63 per litre, with some cities like Vancouver experiencing higher costs at around $2.71 per litre. Trump engaged in discussions with French President Emmanuel Macron, who chairs the G7, emphasizing the urgency of addressing the surge in fuel prices and ensuring the availability of petroleum products. Macron subsequently convened a virtual meeting of G7 leaders to deliberate on the matter.
This step follows Trump’s recent contemplation of prohibiting diesel exports to alleviate gasoline expenses for American motorists, a move cautioned against by experts who fear its potential negative impact on the global fuel market and a further escalation of prices worldwide.
A recent AP-NORC poll revealed that a majority of U.S. adults attribute the surge in prices to Trump, leading to a decline in approval ratings for his economic management.
