The G7 has agreed to coordinate the release of up to 100 million barrels of diesel and crude oil from emergency reserves as governments respond to a sharp rise in fuel prices and tighter global supplies.
The agreement followed a video meeting of G7 leaders chaired by French President Emmanuel Macron on Friday. The release will be coordinated through the International Energy Agency (IEA) and is expected to take place over four months, with a substantial amount of diesel released during the first 20 days.
G7 moves to release emergency fuel reserves
Macron said the G7 countries and partners would release strategic stocks of diesel and crude oil and work to increase refinery output where possible. The group also agreed not to impose energy export restrictions between G7 members.
The G7 includes Australia’s major economic partners: the United States, United Kingdom, France, Germany, Italy, Canada and Japan. The coordinated action is intended to add supply to markets that have been affected by disruptions to oil and refined-fuel flows.
France’s presidency said the measure could involve up to 100 million barrels over four months, while diesel releases would be brought forward to provide more immediate support to fuel markets. The Élysée Palace said the G7 also wanted to avoid export restrictions that could increase pressure on global markets.
Trump had threatened a US diesel export ban
The agreement came after US President Donald Trump had raised the possibility of restricting US diesel exports as American fuel prices climbed. Trump later welcomed the G7 decision and said the United States would not proceed with an export ban.
Reuters reported that the G7 agreement followed pressure from Washington for other countries to release emergency stocks. The Reuters report said the coordinated release is intended to help stabilise global energy markets.
Europe has been particularly exposed to changes in diesel supply because it produces most of its diesel domestically but still relies on imports to cover part of its demand. A US export restriction could have increased competition for available cargoes in Europe and other markets.
Fuel prices remain under pressure
Diesel prices have risen sharply in several major markets as refining capacity and international fuel flows have been disrupted. The pressure has been compounded by disruptions affecting oil and refined-product supplies from parts of the Middle East and Russia.
Brent crude was trading around or above US$100 a barrel during Friday trading, according to market reports. The emergency stock release is designed to provide additional supply, although the longer-term effect on fuel prices will depend on refinery output, crude flows and the wider global energy situation.
The IEA has already been coordinating a major emergency oil-stock response in 2026. The latest G7 decision adds another coordinated release as governments seek to reduce pressure on households, transport operators and businesses facing higher energy costs.
Whether the additional barrels lead to sustained lower prices will depend on how quickly the fuel reaches consumers and whether broader supply disruptions continue.
Sources: Reuters; Élysée Palace.
