G7 moves to release diesel reserves as energy prices climb

G7 countries have agreed to release up to 100 million barrels of diesel and crude oil from strategic reserves over the next four months in an effort to bring down energy prices.

French President Emmanuel Macron announced the agreement on Friday, saying the bloc of advanced economies will act “in a coordinated manner” to stabilise global energy markets.

Writing on X, Macron said the countries had agreed to maximise production by making it more flexible, while releasing up to 100 million barrels of diesel and crude oil from strategic reserves.

The release will be coordinated by the International Energy Agency.

The countries also agreed to avoid introducing measures that would restrict the trade of energy and petroleum products between partner countries.

This development comes after Finance Minister Clyde Caruana this week spoke on government spending on energy subsidies.

Caruana said energy subsidies are expected to cost €400 million this year, which is more than double the original forecast.

In September, Caruana had told MaltaToday that the subsidy on diesel alone had more than doubled to €75 million over the summer months.

These subsidies have allowed fuel prices in Malta to remain stable. At €1.21 per litre, diesel in Malta is the cheapest across the EU.

Energy prices have stubbornly continued to rise since tensions began to escalate in the Middle East as a result of the American-Israeli war on Iran, prompting the closure of the Strait of Hormuz. Prices were already under heavy strain due to a second ongoing war between Russia and Ukraine.

US President Donald Trump announced the agreement on social media around half an hour before European leaders publicly commented on it.

“Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately. Thank you for your attention to this matter! President DJT,” Trump wrote.