US tells Europe to release diesel reserves as fuel prices surge
MILWAUKEE: The United States on Thursday told its European allies to help lower global diesel prices by releasing strategic reserves “immediately,” with EU member states due to discuss the crisis on Friday.
The United States has urged its European allies to release strategic diesel reserves to help alleviate the surge in global diesel prices, according to a report on Thursday. The Trump administration, in particular, is pushing for France and Germany to tap into their stockpiles, aiming to curb prices that have skyrocketed due to the US' war on Iran.
US Treasury Secretary Scott Bessent, in a social media post, called on EU member states to "accelerate delivery on their existing commitments and make additional supplies immediately available" to address ongoing disruptions.
EU member states are scheduled to meet with the European Commission on Friday to discuss a coordinated response to the soaring fuel prices. Meanwhile, Trump floated the possibility of banning diesel exports, though he acknowledged it could potentially lead to higher gasoline prices. The White House stressed that the United States and Europe should work together on multiple avenues to boost refined products' supply and reduce costs for consumers.
EU trade chief Maros Sefcovic expressed surprise at the idea of a US diesel export ban, stating that it would have "very dramatic consequences for our economic performance." French Minister Delegate for International Trade Nicolas Forissier also dismissed the likelihood of a ban, emphasizing the importance of diesel to both the US and European nations and indicating a willingness to find solutions through collaboration.
The controversy comes as high energy costs pose a threat to Trump's Republican party in the upcoming midterm elections. On Sept. 18, President Macron announced a plan to convene a G7 leaders video meeting to discuss various measures to address the rising fuel prices, with the meeting expected in mid-October.
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