US Urges European Allies to Take ‘Immediate’ Steps to Lower Diesel Prices
Washington seeks emergency fuel releases from European allies as EU governments prepare a coordinated response to soaring diesel costs.
Milwaukee, Oct 1: The United States on Thursday urged its European allies to release strategic diesel reserves immediately to help ease a sharp rise in global fuel prices, as European Union countries prepared to discuss a coordinated response to the worsening supply situation.
US Treasury Secretary Scott Bessent called on European partners to speed up previously agreed measures and make additional fuel supplies available to deal with continuing disruptions.
The Trump administration has reportedly put particular pressure on France and Germany to draw from their emergency diesel inventories. The request comes as Washington seeks additional supplies to bring down fuel costs amid disruptions linked to the conflict involving Iran and tighter global refined-fuel markets. Reuters reported that the US has asked the EU to release 120 million barrels of diesel over six months.
The pressure on European governments has increased as US President Donald Trump considers restricting American diesel exports. Trump said Wednesday that he was still weighing the possibility, while acknowledging that such a step could also affect gasoline prices.
European officials have expressed concern about any US restrictions. EU trade chief Maros Sefcovic said a diesel export ban would be unexpected for European countries and could have significant consequences for their economies. He said Washington and Brussels had agreed to remain in close contact to avoid surprises.
At the G20 trade ministers’ meeting in Milwaukee, US Trade Representative Jamieson Greer said there was a willingness on both sides to cooperate on the diesel issue.
France has also indicated that it wants to find solutions to the fuel crisis. French Trade Minister Nicolas Forissier said he could not imagine a US diesel export ban and stressed the importance of the fuel supply for both Europe and the United States.
The European Commission said EU member states would meet Friday to consider a coordinated response to soaring diesel prices. France, Germany, Italy, Ireland and Britain were also involved in discussions on the possible release of emergency stocks.
France has separately been preparing a G7-level discussion on measures to address rising energy costs. President Emmanuel Macron is expected to convene a meeting of G7 leaders, with possible coordination over the use of strategic reserves among the issues under consideration.
The fuel crisis has intensified pressure on governments as diesel prices have risen sharply in both the United States and Europe. France and Germany are particularly significant because together they hold more than one-third of the EU’s emergency diesel reserves, according to Reuters.
For Europe, the issue has become more complicated as the region prepares for the winter period and remains dependent on imported refined fuels. The possibility of reduced US exports has raised concerns about additional pressure on supplies and prices.
Washington, meanwhile, is seeking measures that could increase the availability of refined products and reduce costs for consumers. The discussions between the US and Europe are expected to continue as governments assess how much fuel can be released without undermining their own supply security.
