Mumbai, Oct. 8 -- The Group of Seven (G7) nations have agreed to release 100 mn barrels of oil over four months to ease surging fuel prices, with a substantial volume of diesel scheduled for release during the first 20 days. The decision follows a sharp rise in US diesel prices, which has increased pressure on President Donald Trump's administration before the November midterm elections.
Trump said European countries had agreed to release significant quantities of diesel from their reserves and that the process would begin immediately. The announcement came after an overnight conversation between Trump and French President Emmanuel Macron, according to a statement issued by France.
The International Energy Agency (IEA) will coordinate the release, the statement said. G7 members and partner countries will carry out the operation jointly over four months, although the announcement did not provide a country-by-country breakdown of the volumes involved or specify how much crude oil and diesel each participant would contribute.
The move comes as fuel prices have risen in the United States and other countries during the eight-month war involving Iran. US diesel prices have climbed sharply in recent weeks, with the national average reaching US$6.37 per gallon on October 2, according to the American Automobile Association (AAA).
The average had touched a record US$6.52 per gallon on September 22. The planned release is intended to increase the availability of refined fuel, particularly diesel, and reduce pressure on markets affected by the conflict. The G7 announcement also places the IEA at the centre of efforts to manage the coordinated response among major industrialised economies and their partner countries.
Published by HT Digital Content Services with permission from Construction World.