The G7 nations have agreed to release 100 million barrels of oil to help ease rising fuel prices, starting with a large release of diesel.
U.S. President Donald Trump said the diesel release would begin immediately. The G7 said a major amount of diesel would be released within 20 days, with the rest of the oil released over four months.
The move comes as fuel prices have risen sharply during the eight-month war with Iran. Trump has faced pressure to lower energy costs ahead of the Nov. 3 U.S. midterm elections.
The average price of diesel in Canada was $2.63 per litre on Thursday. Prices were higher in some areas, including Vancouver, where diesel was about $2.71 per litre. Higher fuel costs have increased expenses for truck drivers and farmers.
France, which holds the G7 presidency, announced the plan after a video meeting led by President Emmanuel Macron. The G7 includes Canada, France, Germany, Italy, Japan, the U.K. and the U.S., with the European Union also represented.
The International Energy Agency will co-ordinate the release. The plan follows a March decision by IEA countries to release 426 million barrels of oil and petroleum products to help stabilize the market.
The G7 also agreed not to restrict energy exports between member countries, saying export bans could increase pressure on global fuel markets.
The announcement comes after Trump suggested last week that the U.S. could restrict diesel exports to lower prices for American drivers. Experts have warned that such a move could put more pressure on global fuel supplies.
