On Thursday, the U.S. urged its European allies, particularly Germany and France, to "immediately" release their strategic diesel reserves to help reduce soaring fuel prices.
This request was made after Donald Trump, the President of the United States, suggested on Wednesday the possibility of banning U.S. diesel exports to prevent price increases.
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Increase in Diesel Prices in the United States
According to AAA data, the average diesel price in the United States has increased by more than 70% since the start of the Iran war, reaching $6.39 per gallon (€1.50 per liter). This price increase has sparked public outrage and heightened concerns about the possibility of Republicans losing control of Congress in the November midterm elections.
The German Automobile Club ADAC reported on Thursday that the average diesel price in the country has reached €2.409 per liter ($10.25 per gallon).
Coordinated Action to Reduce Prices
Chris Wright, the U.S. Secretary of Energy, told Fox News that he is "very confident" that Europe can reduce prices by tapping into emergency diesel reserves. He emphasized, "This is the right time for a coordinated release of diesel reserves, and more diesel needs to be brought to market now. I think good news is on the way."
Scott Basset, the U.S. Secretary of the Treasury, stated that Washington has adhered to an agreement reached in March among members of the International Energy Agency (IEA) to release 172 million barrels of U.S. diesel. He said, "The U.S. has done its part, and we expect our allies to demonstrate their alliance by fulfilling their commitments."
U.S. Trade Representative Jimenson Greer also mentioned that both sides are willing to collaborate on the diesel issue. He clarified, "We know that France, Germany, and Italy have reserves, and I think they are willing to find a way to cooperate with the United States."
Meanwhile, the European Commission announced that the energy working group of the union will hold an emergency meeting on Friday to review the diesel price situation.
The Secretary-General of Energy of the European Union, Dan Jørgensen, has been in contact with officials from France, Germany, Italy, Ireland, and the UK on Thursday to coordinate their positions.
Read more: U.S. Energy Secretary urges Europe to release one-third of its diesel reserves · European countries respond with coordinated action to U.S. pressure on diesel
