US urges Europe to release diesel reserves as prices surge

The United States urged European allies on Oct. 1 to release strategic diesel reserves immediately, with the Trump administration focusing particularly on stockpiles held by France and Germany as fuel prices rose in the US and Europe.¹²

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Pressure for European action

US Treasury Secretary Scott Bessent called on European partners to speed up previously agreed deliveries and provide more diesel at once. A US official said collaboration would serve Europe’s interests by expanding supplies of refined products and reducing costs for consumers. Al Jazeera separately reported that Washington viewed releases from European emergency inventories as a way to moderate global prices.¹²³

EU member states were due to meet the European Commission to consider a joint response to sharply higher fuel prices. According to Al Jazeera, European capitals were coordinating diesel measures, while European Commission data showed that 12 EU countries had registered record diesel prices. The outlet also reported that France and Germany together held more than one-third of the bloc’s strategic diesel reserves.¹²³

President Donald Trump said the United States might seek releases from European stocks. However, the French presidency said no such request had been made when Trump met French President Emmanuel Macron. That account has not been independently confirmed in the dossier.¹²³

Macron, who announced plans for a G7 meeting on Sept. 18, intended to convene the group’s leaders by video in mid-October to discuss responses to higher fuel prices, including coordination over possible reserve releases. His press office said the gathering was expected in the middle of the month.¹²

Export ban under consideration

The Trump administration was also considering a ban on US diesel exports. Al Jazeera reported separately that administration officials and Republican lawmakers had discussed export restrictions. Trump, when asked about the possibility, said: “I'm thinking about it”.¹²³

European officials expressed concern about that option. Maros Sefcovic, the EU’s trade chief, said Europeans would not expect such a ban. Nicolas Forissier, the French minister delegate responsible for international trade, said he could not imagine one being imposed. According to Al Jazeera, Sefcovic also warned that the restriction would harm Europe’s economy.¹²³

US Trade Representative Jamieson Greer and Sefcovic met during a two-day gathering of G20 trade ministers in Milwaukee and agreed to maintain close contact. Greer described “eagerness on both sides to work together” on diesel supplies. Al Jazeera reported that France, Germany and Italy favoured cooperation with Washington to bring more diesel to market.¹²³

Prices and political pressure

Figures attributed to the AAA motor club showed that the average US diesel price was $6.39 per gallon, an increase of more than 70 per cent from when the Iran war began. Al Jazeera reported that the conflict was driving the increase and that US diesel had reached a record $6.53 a gallon a week earlier.¹²³

The rise has intensified fears among Trump’s Republicans that expensive fuel and broader living costs could cost the party its congressional majority in the November midterms. Washington’s requests to Europe and its consideration of export controls therefore come as officials seek additional refined-fuel supply while confronting higher domestic prices.¹²