G7 agrees to release 100 million barrels of fuel

The Group of Seven leading economies have agreed to release up to 100 million barrels of emergency diesel and oil stocks over the next four months, in an attempt to bring down soaring fuel prices.

The release will be co-ordinated by the International Energy Agency. Countries agreed to start immediately, with what they called a "front-loaded substantial diesel release within the first 20 days".

Prices ease

Oil prices fell after the announcement. Brent crude, the international benchmark, was 1.48 per cent lower at 100.80 dollars a barrel, and West Texas Intermediate, the main US benchmark, fell by 2.66 per cent to 90.40 dollars a barrel.

Why diesel

Diesel prices have risen particularly sharply because of the war involving Iran and Russia's war in Ukraine, which have disrupted supplies of both crude oil and refined fuels. Diesel is used by lorries, buses, farm machinery and industry, as well as by millions of cars and vans, so its price feeds through into the cost of almost everything.

In the United States, diesel has reached around 6.50 dollars a gallon, nearly three dollars higher than a year ago. In Europe, average prices have hit a record of 2.24 euros a litre, up from 1.59 euros before the fighting began at the end of February.

In the UK, the average price of diesel reached an all-time high of 199.18p a litre last week, according to the RAC, making it the most expensive in Europe.

Pressure from Washington

The agreement followed mounting pressure from the Trump administration for allies to do more to bring down fuel prices. G7 leaders also pledged not to impose restrictions on exports of energy products between their countries, and urged other producers to do the same.

The second release this year

This is not the first emergency release of 2026. In March, International Energy Agency member countries agreed to release a record 400 million barrels from their strategic reserves. By the start of October, they had released around two thirds of that amount.

Oil flows through the Strait of Hormuz, the narrow sea route through which a large share of the world's oil passes, recovered to near pre-war levels in September, according to the analytics firm Kpler. But prices have stayed high because of uncertainty about the conflict.

What it means for drivers

It usually takes some time for changes in wholesale prices to feed through to the pump. Motoring groups say retailers should pass on any fall quickly. Drivers can compare prices at local filling stations using comparison websites and apps, and supermarket forecourts are often cheaper than motorway services.

What it means for business

Hauliers, delivery firms and manufacturers have been hit hard by the rise in diesel prices. Business groups in Birmingham and elsewhere have warned that fuel costs are adding to the pressure on firms already facing higher energy bills, and that some of the extra cost will be passed on to customers.

About the G7

The G7 is made up of the UK, the United States, Canada, France, Germany, Italy and Japan, with the European Union also taking part. The International Energy Agency, based in Paris, was set up after the oil crisis of the 1970s to help co-ordinate responses to disruptions in supply.