G7 nations agree to release 100 million barrels of oil, with diesel front-loaded, as fuel prices hit records

The announcement and what it commits

The leaders of the Group of Seven have agreed to a coordinated release of 100 million barrels of oil and fuel products through the International Energy Agency, to begin immediately and run over four months, in response to surging oil and fuel prices. The G7's own statement, published by the UK Government on 2 October 2026, says the release includes "a frontloaded substantial diesel release within the first 20 days by G7 members and partners", and that the group will convene in the context of the IEA in coming days to discuss the possibility of additional diesel releases as necessary. ⁴

The virtual meeting was chaired by French President Emmanuel Macron, whose country holds the rotating G7 presidency, after an overnight phone call with US President Donald Trump about rising fuel prices, according to reporting published by The Age and the Sydney Morning Herald. Citing the French Embassy in the United States, the report says Trump also called in to the leaders' meeting itself to negotiate the release of European diesel stockpiles, according to a White House official who spoke on condition of anonymity. ¹³

Trump welcomed the outcome in a post on Truth Social, saying Europe had "just agreed to release a massive amount of their heavily stocked Diesel Oil" and that the process would begin immediately, according to i24NEWS, which also reported that Macron announced the agreement on Friday and said participating countries had agreed not to restrict oil exports. ⁷

The G7 members are France, Canada, Germany, Italy, Japan, the United Kingdom and the United States, with the European Union also participating in its meetings, as CNBC reports. France currently holds the group's presidency. ²

Record diesel prices in the United States

The announcement followed record-high diesel prices in the United States. The national average for a gallon of diesel was $US6.37 on Friday, according to AAA, after hitting a record $US6.52 on September 22, as reported by The Age and confirmed in CNBC TV18's coverage of the same AAA figures. CNBC separately reports that US diesel prices hit record highs in September and remained elevated on Friday at the same $US6.37 average. ¹⁶²

According to The Age's report, Trump and his Republican Party face pressure to address surging prices ahead of the November 3 midterm elections, with an AP-NORC poll showing the president's approval ratings on the economy hitting a new low. The outlet reports that gas prices in the US and abroad have soared during the eight-month-long war with Iran, a cost Trump has repeatedly said is worth it to prevent Iran obtaining nuclear weapons. ¹³

CNBC reports that the world is facing a fuel supply crisis driven by Ukraine's attacks on Russian refineries and disruptions in the Middle East arising from the Iran war, and that the Trump administration had been pressuring Europe to release diesel stocks as an alternative to the US imposing an export ban. Treasury Secretary Scott Bessent said on Thursday that US partners in Europe "should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions". ²

European Commission pushback on US pressure

The pressure campaign surrounding the release produced friction of its own. Earlier on Friday, the European Commission pushed back against what it described as US "threats" to force European countries to act, a distinct development in the run-up to the agreement not addressed in earlier statements from either side. ⁵

That public objection underscores the tension between Washington and Brussels over diesel stockpiles even as both ultimately featured in the same coordinated outcome, with the Commission framing the American approach as coercive rather than consultative. ⁵

Australian pump prices at their highest since April

The move has direct relevance for Australian motorists, whose fuel costs have been climbing. The Age reports that Australian petrol and diesel prices climbed to their highest average levels since April, with regular unleaded averaging $2.37 a litre at service stations nationwide in the week to Monday, September 28, up 10 cents a litre from the week earlier, according to figures from the Australian Institute of Petroleum. Diesel rose even more sharply, increasing nearly 14 cents to $2.87 a litre over the same period. ¹³

Those Australian figures are national weekly averages drawn from the Australian Institute of Petroleum's monitoring, and are reported in Australian dollars per litre; they are distinct from the US per-gallon diesel figures cited above and the two are on different bases. The G7 release is aimed at easing international supply pressure, though the reporting does not specify when any effect would flow through to local pump prices. ¹³

Export bans off the table, for now

Alongside the release, the G7 statement commits members to "refrain from export restrictions on energy and energy products between G7 countries" and to call on all producers to refrain from imposing bans that could exacerbate market tensions, according to the UK Government's publication of the leaders' statement. This follows calls from some Republicans in the US for Trump to ban diesel exports to bring domestic prices down, as reported by The Age. ⁴¹³

The prospect of an outright US ban had raised alarm in Europe. CNBC reports that the US supplied around half of the EU's diesel imports in August, according to the International Energy Agency, underscoring the bloc's exposure. EU trade chief Maros Sefcovic said he had discussed diesel supplies with his US counterpart, Trade Representative Jamieson Greer, and told reporters at the G20 trade ministers meeting in Milwaukee, according to Reuters, that any US move to restrict diesel exports would be unexpected and have a negative impact on Europe's economic outlook. ²

CNBC also reports that Trump had said last week he was considering an export ban, a move the US oil industry and broader business community staunchly oppose, and that he subsequently appeared to lean against it due to its potential impact on gasoline prices. ²

How the release will work and what happens next

Beyond the barrel release itself, the G7 statement says members will coordinate maintenance schedules across G7 refineries to prevent simultaneous capacity shutdowns and temporarily increase utilisation rates where feasible, and will encourage countries with significant refining capacity to boost production of refined products, particularly diesel. The group will also maintain sanctions against Russia while working with the IEA to prevent spillovers into fuel and gas markets, and calls for the immediate and full restoration of navigational rights in the Strait of Hormuz. ⁴⁶

The IEA has been asked to monitor the impact of the measures and the implementation of commitments, with a follow-up report due before 20 days that should include actionable recommendations on future responses, including stocks replenishment, according to the G7 leaders' statement. The release takes account of commitments already fulfilled under an earlier pledge made in March 2026, the statement says. ⁴⁷

The scale of the release is modest relative to daily demand. Yahoo News' syndicated report calculates that 100 million barrels released evenly over four months would amount to roughly 830,000 barrels a day, and cautions that strategic crude releases do not immediately translate into extra diesel supplies, since refineries must first process the crude, with capacity, logistics and crude type all affecting how much fuel reaches consumers. The same report notes the impact will depend on how quickly countries release their stocks. ⁵

Macquarie Group energy strategists, cited by CNBC, argued in a research note on Thursday that the core issue the US faces is "not a diesel problem" but "a global energy problem", with the firm's Walt Chancellor saying the solution is "more oil through the Strait of Hormuz and out of the Middle East". CNBC reports that crude exports from the Persian Gulf were at or near prewar levels depending on the day, though fuel shipments from the region remain far below normal levels. ²

Behind the supply squeeze

The Wall Street Journal, as reported by i24NEWS, found that wars in the Middle East and Ukraine had disrupted shipments from regions that normally account for almost a third of global diesel exports, driving up costs for businesses, farmers and households, with analysts cited by the newspaper saying restrictions on US exports would offer only temporary relief. The G7 statement itself condemns Iran's continued attacks against its regional neighbours and its disruption of international trade and energy security. ⁷⁴

For Australian readers, the announcement lands against a backdrop of locally rising costs for both petrol and diesel, with the Australian Institute of Petroleum's weekly figures showing diesel up nearly 14 cents to $2.87 a litre in the week to September 28. Whether and how quickly the coordinated release eases prices at the pump remains to be seen, and the G7 has left the door open to further diesel releases if needed. ¹⁴