The Group of Seven (G7) advanced economies have agreed to release up to 100 million barrels of oil and refined fuel products, including diesel, over the next four months in an effort to stabilize surging fuel prices. The decision was announced following a virtual meeting convened by French President Emmanuel Macron, whose country currently holds the rotating presidency of the G7.
The coordinated release will begin with a substantial upfront distribution of diesel within the first 20 days. U.S. President Donald Trump confirmed the immediate start of the diesel discharge on social media, framing the move as a response to rising fuel costs affecting consumers ahead of the November midterm elections. Diesel prices have reached record levels in multiple regions, with the U.S. national average hitting $6.37 a gallon on Friday after peaking at $6.52 in late September, while UK diesel prices topped £2 per litre for the first time.
The release aims to ease price pressures by increasing supply and enhancing market liquidity. Macron emphasized that the collective effort should help push prices down "at the pump as quickly as possible," while Ursula von der Leyen, president of the European Union, underscored the bloc's support for maintaining open energy exports among G7 members.
The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and European Union representation. In March, International Energy Agency members had already announced a release of 426 million barrels to support energy markets, with EU countries pledging around 92 million barrels, largely in refined products such as diesel.
The current supply measures are seen as a response to several factors driving fuel costs higher. Russia’s decision to ban diesel exports following damage to its refineries amid the ongoing conflict in Ukraine has cut a significant source of diesel in global markets. Europe, which does not import Russian diesel directly, now faces increased competition from other buyers traditionally supplied by Russia, such as Turkey and Latin American countries. Additionally, damage and blockades affecting Persian Gulf exports have further strained supply.
Energy analysts note that the new release amounts to approximately 400,000 barrels of diesel daily, representing about one-tenth of Europe’s previous diesel imports from Russia. Despite this, some experts have described the G7 measure as “underwhelming,” highlighting the gap left by the reduction in Russian supply and the closure of European refining capacity in recent years.
There has been debate within the U.S. about imposing restrictions on diesel exports to lower domestic prices. Trump had threatened such a ban, but the G7 statement affirmed a commitment not to restrict energy exports among group members, reflecting concerns that curtailing exports could disrupt fuel supplies and refinery operations.
Market reactions included a 6 percent fall in U.S. diesel futures prices following the announcement, though analysts caution that retail prices may take up to two weeks to reflect the increased supply fully. Some economists emphasize that while the release will help alleviate price pressures, the decline at the pump is unlikely to be immediate or dramatic.
Overall, the G7’s coordinated release of oil and refined fuel reserves represents a collective effort to mitigate energy market volatility amid geopolitical tensions and supply disruptions, while balancing concerns over maintaining resilient and open energy trade.