US urges European allies to release diesel reserves to lower prices

The United States on Thursday told its European allies, particularly Germany and France, to "immediately" release their strategic reserves of diesel to help lower the soaring price of the refined fuel.

It comes after President Donald Trump on Wednesday floated the possibility of banning US diesel exports to stem the rise in prices.

Average US diesel prices have surged over 70% to $6.39 per US gallon (€1.50 per liter) since the start of the Iran war, according to AAA motor club data.

The surging cost of fuel has stoked public anger and intensified anxiety within Trump's Republican Party that it could lose control of Congress in November's midterm elections.

Germany's ADAC motoring club on Thursday reported an average diesel price of €2.409 per liter ($10.25 per US gallon).

What did US officials say?

US Energy Secretary Chris Wright told Fox News on Thursday that he was "highly confident" Europe could ease fuel prices by drawing down emergency diesel inventories.

"This is a time for a coordinated release of diesel stores as we ⁠go into ​to harvest season and we go into winter heating oil season," Wright told the US broadcaster. "Now's the time to bring ​more diesel to the market, and that diesel is available. I think we have some positive news coming."

US Treasury Secretary Scott Bessent said Washington had done its share of an agreement struck in March among International Energy Agency ​members in releasing 172 million barrels of US diesel. "America is doing its part," Bessent said on X. "We look to our allies to match their commitments with action."

"Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions," he added.

US Trade Representative Jamieson Greer, meanwhile, said there was an "eagerness on both sides to work together" on the diesel issue.

"We know that France, Germany, and Italy, ‌they're sitting on reserves ... ‌I won't ​put words in their mouth, of course, but ​I think they would love to have ⁠a ​cooperative path ​forward with the United ​States on how ‌we get more diesel ​to ⁠market," Greer told a news conference ⁠in ​Milwaukee.

How did the EU respond to the US demand?

European Union trade chief Maros Sefcovic, who was also attending a two-day G20 trade ministers' gathering in Milwaukee, met with Greer but told reporters that he did not go into details on energy exports.

The EU official said any move by the US to ban diesel exports would be "unexpected for Europeans."

He added that such a ban would have "very dramatic consequences for our economic performance."

Sefcovic said both sides "decided to stay in close touch to avoid any surprises here."

France's minister delegate for international trade, Nicolas Forissier, told the AFP news agency in Milwaukee: "I can't imagine that there will be a ban." He stressed that both sides will "try to find solutions."

Germany's Economy Ministry, meanwhile, said the International Energy Agency, the West's energy watchdog, has not yet asked Germany to release stocks.

On Friday morning, the EU's energy task force will hold an emergency meeting to discuss the situation, a Commission spokesperson said.

The task force is made up of the European Commission and the 27 EU member ​countries.

Don't let the algorithm hide the news. If you rely on our team for trusted reporting, please take a moment to select us as your Preferred Source on Google by clicking here and hitting the "star" or "preferred" button so you'll see our verified news first.

Edited by: Sean Sinico