(AFP) – G7 leaders were holding talks Friday to coordinate action on tackling high fuel prices, after Washington upped pressure on Europe to release its strategic reserves or face a US diesel export ban. The US war with Iran has sent energy prices skyrocketing, coming back to bite President Donald Trump at home with high fuel costs that have become a key issue ahead of midterm congressional elections in a month.
After speaking with Trump, France’s President Emmanuel Macron convened a video call starting at 1230 GMT of fellow G7 leaders — also comprising Britain, Japan, Canada, Germany, and Italy — to discuss joint action. Earlier, the EU pushed back hard against US threats to impose a diesel export ban, something Macron also warned against during his conversation with Trump. “We fully reject any ban on diesel. A ban would not be beneficial to anyone. It would undermine our trust in the United States as a reliable partner,” European Commission spokeswoman Anna-Kaisa Itkonen said. The 27-nation bloc is ready to work with the International Energy Agency (IEA) on the possible release of fuel reserves to contain prices, she added, following crisis talks between member states and the commission to forge a unified response.
The flurry of diplomatic activity came a day after US Treasury Secretary Scott Bessent cranked up the pressure on European nations. “Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions,” Bessent posted on social media. “American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage,” he wrote. US Energy Secretary Chris Wright likewise held talks with his British counterpart Miatta Fahnbulleh on the crisis, including on the UK’s strategic reserves.
British dairy farmer Keith Blackshaw, in the Derbyshire hamlet of Newhaven, complained of a “vicious circle” with high fuel prices being passed onto customers. “I’d like to see Mr. Trump support us a little bit more really,” the 69-year-old said. “He looks after his own. Maybe we should do the same, look after our own.” The 32 members of the IEA agreed last March to unlock 400 million barrels of oil from reserves, their largest release ever. Earlier this week, IEA chief Fatih Birol said European nations had yet to release part of those stocks, which could happen soon. “A big chunk of the stocks have been released, but still some remain, both in terms of crude oil and products,” Birol told reporters Tuesday after a meeting of EU energy ministers in Dublin. About a third was yet to come to market, Birol said, adding that further releases were possible since 80 percent of overall IEA stocks “still in our pocket”.
Diesel prices in the United States and Europe have hit record highs in recent weeks, with an export ban imposed by major producer Russia in response to Ukrainian attacks on fuel facilities also contributing to global market pressures.
Trump on Wednesday floated the possibility of banning US exports of diesel, which is widely used in agriculture, construction, and shipping — an alarming prospect for the EU, which relies heavily on fossil fuel imports. EU trade chief Maros Sefcovic told reporters Thursday on the sidelines of the G20 trade ministers gathering in Milwaukee that the ban would have “dramatic consequences for our economic performance”. Reports said the Trump administration wants France and Germany in particular to tap their stockpiles of diesel to try to curb prices.
“It is in Europe’s best interest to work with the United States as we pursue multiple pathways to boost the supply of refined products and lower costs for consumers,” a US official told AFP. The German government Friday also called for “coordinated and reciprocal solutions”, warning against unilateral actions that would destabilize global fuel markets. Further EU discussions at the ambassador level were also scheduled for Friday afternoon. Energy price increases in the eurozone surged to 18.8 percent in September, pushing inflation to 3.8 percent, the highest level in three years.
– Valerie Leroux with Umberto Bacchi in Brussels
© 2024 AFP
