G7 countries to release emergency diesel stockpiles amid export threat
Emergency stockpiles of diesel will be released by G7 countries including Britain, France, and Germany after Donald Trump threatened an export ban, reports BritPanorama.
A crisis meeting held today led to the tapping of 100 million barrels of strategic reserves of diesel and oil over the next four months.
America had threatened to impose a ban on diesel exports as part of efforts to bring down pump prices for its consumers. US President Donald Trump stated: “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately…”
The release comes as the average price of diesel in the UK hit higher than £2 for the first time amid the fallout from the Middle East conflict.
French President Emmanuel Macron indicated that G7 countries will now “take no measures to restrict the exchange of energy and petroleum products between partner countries.”
Foreign Secretary Ed Miliband represented Britain on the call as Prime Minister Andy Burnham was attending his father’s funeral.
Global supplies have been impacted by the ongoing Middle East war, alongside the Ukraine conflict, which has triggered a ban on Russian diesel exports.
Britain heavily relies on the US for its diesel supplies, with 55 percent coming from America.
A joint G7 leaders’ statement following the virtual meeting read: “We have agreed on decisive, coordinated measures to stabilise immediate energy supplies, shield households and businesses from price shocks, and strengthen the long-term resilience of global energy systems.”
“We will coordinate maintenance schedules across G7 refineries to prevent simultaneous capacity shutdowns and temporarily increase utilisation rates where feasible.”
Meanwhile, pump prices in the UK have continued to rise, with the RAC reporting that the average forecourt cost for diesel has now reached £2 per litre.
RAC head of policy Simon Williams commented: “This is a pump price threshold that no one wanted to cross – the average price of a litre of diesel has risen to a record 200.01p and is showing no signs of slowing, heaping more misery onto motorists.”
“The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US/Iran war.”
“This will be very challenging for households and companies that drive a lot of miles, from commuters, haulage and delivery firms, to businesses with large fleets and sole traders.”
“In a cruel twist, it’s diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people’s pockets.”
As the G7 nations navigate this escalating energy crisis, the interplay between geopolitical tensions and domestic economic realities will likely reshape their energy strategies in the months ahead. The collective response underscores the necessity for coordinated international efforts to ensure supply security and price stability in an ever-evolving global landscape.
