G7 nations have taken a major decision to curb the continuously rising prices of oil and diesel in the global market. On Friday, member countries of the G7 group agreed to release 100 million barrels of crude oil and diesel from their respective emergency reserves into the market. This fuel supply will reach the market in the coming weeks, providing significant relief to the general public from soaring oil prices. US President Donald Trump announced that a large quantity of diesel from the emergency reserves would be released into the market within the next 20 days, with the remaining oil to be supplied over the next four months. Rising fuel prices ahead of the mid-term elections scheduled for November 3 in the US have become a major cause for concern for the Trump administration. Due to the conflict involving Iran and trade disputes, the price of diesel in the US had reached a record high of $6.52 per gallon. A similar situation has emerged in Europe as well.
No restrictions on fuel exports:
Many American leaders had demanded a halt to fuel exports to control prices in the domestic market. However, G7 nations have agreed not to impose any restrictions on energy exports among themselves. Trump has also clarified that the US will not stop exports. Following a meeting chaired by French President Emmanuel Macron, it was stated that this decision would alleviate the oil shortage in the market and lead to a drop in prices. However, energy experts believe that releasing oil from emergency reserves could temporarily lower prices by 25 to 50 cents per liter. Yet, depleting emergency oil reserves while the war situation persists could pose a significant risk to long-term security.
