G7 Agrees Coordinated Diesel Release as Prices Hit Record Highs
Leaders from the G7 group of advanced economies have agreed to act "in a coordinated manner" to bring down soaring diesel prices, following weeks of pressure from the United States on Europe to release its emergency fuel stocks.
Under the agreement, G7 countries will make production "more flexible," release strategic reserves of up to 100 million barrels within four months, and avoid imposing energy restrictions between partner countries. The deal follows a threat from President Donald Trump to ban US diesel exports, a move aimed at controlling domestic prices, unless Europe agreed to draw down its own reserves.
The pressure has been building as diesel prices surge on both sides of the Atlantic. In the UK, average diesel prices hit a record high this week, reaching £2 a litre for the first time, according to motoring group the RAC. The squeeze stems largely from lingering disruption to Middle East oil supplies following the Iran conflict and the ongoing war between Russia and Ukraine, even as broader crude flows have mostly recovered.
How an emergency reserve release actually works
There is no single "emergency switch" governments can flip. Release mechanisms work through several layers of coordination:
Every EU country is legally required to hold emergency oil stocks equivalent to at least 90 days of average imports, covering crude oil and refined products like diesel, petrol and jet fuel, though the EU doesn't dictate exactly how much of each product type must be held. Within the EU, coordination runs through the European Commission's Oil Coordination Group, which sets the bloc's shared position.
Beyond the EU, the International Energy Agency (IEA), a 32-country body that includes the US, can call for "collective action," a coordinated release across many member countries at once. This is what happened in March 2026, when IEA members released 400 million barrels, the largest coordinated release in the agency's history, roughly double the previous record set after Russia's 2022 invasion of Ukraine.
Crucially, the decision always ultimately rests with individual countries. The EU and IEA agree collective targets and coordinate timing, but each government decides how much of its own stock to actually release.
Where things stand
Officials from the Oil Coordination Group have said there is currently no concrete diesel shortage, reserves remain high across most of Europe. This round of pressure has been as much about managing the US-Europe relationship and heading off a unilateral American export ban as it has been about responding to an actual supply crisis.
The EU and UK together hold roughly 52 million tonnes of gas oil and diesel stocks, with France and Germany alone accounting for over a third of the EU's total. The new G7 commitment to release up to 100 million barrels over four months marks the first coordinated action since March, and comes with an implicit trade-off: Europe releases reserves, and in return, the US avoids the export restrictions that would have hit Europe hardest, given its heavier reliance on imported diesel.