The United States on Thursday told its European allies, particularly Germany and France, to “immediately” release their strategic reserves of diesel to help lower the soaring price of the refined fuel.
It comes after President Donald Trump on Wednesday floated the possibility of banning US diesel exports to stem the rise in prices.
Average US diesel prices have surged over 70% to $6.39 per US gallon (€1.50 per liter) since the start of the Iran war, according to AAA motor club data.
The surging cost of fuel has stoked public anger and intensified anxiety within Trump’s Republican Party that it could lose control of Congress in November’s midterm elections.
Germany’s ADAC motoring club on Thursday reported an average diesel price of €2.409 per liter ($10.25 per US gallon).
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What did US officials say?
US Energy Secretary Chris Wright told Fox News on Thursday that he was “highly confident” Europe could ease fuel prices by drawing down emergency diesel inventories.
“This is a time for a coordinated release of diesel stores as we go into to harvest season and we go into winter heating oil season,” Wright told the US broadcaster. “Now’s the time to bring more diesel to the market, and that diesel is available. I think we have some positive news coming.”
US Treasury Secretary Scott Bessent said Washington had done its share of an agreement struck in March among International Energy Agency (IEA) members in releasing 172 million barrels of US diesel. “America is doing its part,” Bessent said on social media. “We look to our allies to match their commitments with action.”
“Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,” he added.
US Trade Representative Jamieson Greer, meanwhile, said there was an “eagerness on both sides to work together” on the diesel issue.
“We know that France, Germany and Italy are sitting on reserves … I won’t put words in their mouth, of course, but I think they would love to have a cooperative path forward with the United States on how we get more diesel to market,” Greer told a news conference at a two-day G20 trade ministers’ gathering in Milwaukee, USA.
How did the EU respond to the US demand?
The European Union‘s energy task force will hold an emergency meeting on Friday morning to discuss the situation, said a spokeswoman for the European Commission.
“The diesel market is currently very tight, leading to high prices for consumers across the world,” said Anna Kaisa Itkonen said, adding that discussions will also involve the IEA, the West’s energy watchdog.
“The Commission … is closely coordinating with EU member states to take stock of the situation and examine appropriate measures to tackle these high prices.”
The EU’s top energy official Dan Jorgensen was on Thursday in contact with French, German, Italian, Irish and also British authorities to coordinate their positions.
EU trade chief Maros Sefcovic, who was also attending the gathering in Milwaukee, met with his US counterpart Greer but told reporters that they did not go into details on energy exports.
The EU official said any move by the US to ban diesel exports would be “unexpected for Europeans.”
He added that such a ban would have “very dramatic consequences for our economic performance.”
Sefcovic said both sides “decided to stay in close touch to avoid any surprises here.”
France’s minister delegate for international trade, Nicolas Forissier, told the AFP news agency: “I can’t imagine that there will be a ban.” He stressed that both sides will “try to find solutions.”
Germany’s Economy Ministry, meanwhile, said the IEA has not yet asked Berlin to release diesel stocks.
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Edited by: Sean Sinico
