🔶 Dispute in Europe over releasing diesel reserves

EU countries disagree over using emergency diesel reserves to counter rising fuel prices, while the United States is asking European countries to release part of their reserves into the market.

Emmanuel Macron, president of France, has proposed that European countries collectively release 50 million barrels of diesel from their reserves. A source familiar with the talks told Reuters this figure.

Under the proposal, members of the International Energy Agency would also need to import 50 million barrels of crude oil into the market.

Macron also scheduled a video conference of the leaders of the Group of Seven industrialized Western countries for Friday afternoon. Friedrich Merz, the German chancellor, will also take part in the meeting.

The French president’s initiative is being discussed in response to U.S. pressure to increase diesel supply and lower the high fuel price.

But the German government is currently looking at the proposal cautiously.

In German government circles, it has been said that releasing part of the reserves in March managed to reduce market prices only for a short period of time. For this reason, the German government does not want to cause further concern in the markets with a new measure.

Sebastian Hiels, deputy spokesperson for the German government, said: “The reason for the high fuel prices is primarily the situation in the Middle East and the reduction in supply associated with it.”

He added: “Now we must prevent further instability in the markets.”

According to Hiels, most importantly, countries should act in a coordinated manner in this regard.

The proposal to release diesel reserves is also accompanied by an important condition.

According to a source familiar with the matter, a possible agreement among European countries could depend on the condition that the United States undertake not to unilaterally prohibit diesel exports.

In response to U.S. threats, a German government spokesperson said: “We still consider the United States a reliable partner; including in terms of fuel supply.”

The debate intensified after Reuters reported on Thursday that the Trump administration, led by U.S. President Donald Trump, has threatened France and Germany with possible restrictions on U.S. diesel exports if they refuse to release fuel from their strategic reserves.

According to a source familiar with the matter, the United States has asked major European countries to release 100 million barrels of diesel within 20 days.