The United States on Thursday asked its European allies to help lower global diesel prices by “immediately” releasing their strategic reserves, with EU member states expected to discuss the crisis on Friday.
According to reports, the Trump administration wants France and Germany in particular to dip into their diesel stocks to try to curb prices caused by the US war against Iran.
“Our European partners should accelerate compliance with their existing commitments and immediately make additional supplies available to address the ongoing disruptions,” US Treasury Secretary Scott Bessent said in a social media post.
EU member states will meet the European Commission on Friday to discuss a coordinated response to soaring fuel prices, a Commission spokesperson said.
Washington is pushing for European aid to cover fuel costs, with US President Donald Trump raising the possibility of banning diesel exports on Wednesday.
High energy costs threaten Trump’s Republican Party in next month’s midterm elections.
“It is in Europe’s best interest to work with the United States as we explore multiple pathways to increase the supply of refined products and reduce costs for consumers,” a US official told AFP.
At the G20 trade talks in Milwaukee, U.S. Trade Representative Jamieson Greer struck a conciliatory tone, saying there was “an eagerness on both sides to work together” on the diesel issue.
And Trump told reporters in Texas on Thursday that he “might” ask European countries to release their diesel reserves.
Learn moreTrump sparks debate over diesel export ban
‘Unexpected’
Nonetheless, EU trade chief Maros Sefcovic told reporters on Thursday that any US move to ban diesel exports would be “unexpected for Europeans”.
He spoke on the sidelines of the two-day meeting of G20 trade ministers in Milwaukee, after meeting with Greer.
Sefcovic told reporters he did not go into detail with Greer on energy exports.
But the transatlantic partners “decided to stay in close contact to avoid any surprises here,” he said.
“It would have very dramatic consequences on our economic performance,” Sefcovic said of a possible ban on diesel exports.
“I can’t imagine that there would be a ban,” French Minister Delegate for International Trade Nicolas Forissier told AFP.
He stressed the importance of diesel for the United States and European countries, adding that both sides “will try to find solutions.”
“In France, we will try to find balanced solutions everywhere in the world,” added Forissier. “If it’s not with the Americans, it will be with other countries.”
Learn moreUS says it is ‘in Europe’s best interests’ to cooperate on fuel supplies
Trump said Wednesday that he was still considering a possible ban on U.S. diesel exports, while adding that he believed it could ultimately lead to higher gasoline prices.
“I’m thinking about it,” Trump told reporters in the Oval Office.
Speaking alongside Trump, US Energy Secretary Chris Wright said on Wednesday that the world would “hear the announcements from our European friends” to lower diesel prices.
Asked about a release of strategic reserves, the French presidency declared that no such request had been made during the meeting between Emmanuel Macron and Trump on the sidelines of the UN General Assembly last week.
Macron would also soon convene a video meeting of G7 leaders “to make progress on the different levers that can be used to address rising fuel prices… including coordination on the release of reserves.”
Macron announced plans for such a meeting on September 18. The G7 is expected in mid-October, according to Macron’s press service.
Average U.S. diesel prices have jumped more than 70 percent to $6.39 a gallon since the start of the Iran war, according to data from the AAA auto club.
Fuel prices have caused the cost of living to skyrocket, leaving Trump’s Republican Party fearing losing control of Congress in November’s midterm elections.
(FRANCE 24 with AFP)
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