G7 to coordinate refinery maintenance as diesel supply tightens

Russia bans diesel exports after Ukraine strikes refineries

G7 leaders agreed Friday to coordinate refinery maintenance schedules to avoid simultaneous shutdowns and to encourage countries with refining capacity to ramp up diesel production. The new industry-level measures accompany a broader release of up to 100 million barrels of oil and diesel through the International Energy Agency agreed the same day to address supply pressures that have caused fuel prices to skyrocket.

The package comes as Russia has implemented its own diesel export ban following Ukrainian strikes on its refineries, further limiting supply. Russia is also a major diesel producer, and the ban adds to constraints already imposed by conflict in the Middle East, which has restricted the flow of both crude oil and refined diesel onto global markets.

The G7 includes the US, UK, Canada, Japan, Germany, Italy, and France, with the EU also represented at its meetings. In a joint statement, the bloc said member countries had agreed to “refrain from export restrictions on energy and energy products” on one another. The G7 also said: “We will implement our commitments with a coordinated release through the IEA of 100 million barrels to begin immediately over four months, including a frontloaded substantial diesel release within the first 20 days by G7 members and partners.”

The 100 million barrels will comprise a mix of diesel and crude oil. French President Emmanuel Macron, who chaired the meeting, said the coordinated action would “bring down the prices of petroleum products, particularly diesel.” It is not yet clear which partner countries will release stocks, or how quickly.

President Donald Trump had threatened to ban US diesel exports in a move that would have eased pressure on prices for US consumers ahead of November’s midterm elections but pushed up prices elsewhere. Trump had warned he would ban diesel exports from the US if European countries did not agree to put more of their own stocks onto the market. On Friday, he wrote on social media: “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.”

US Treasury Secretary Scott Bessent had argued that US farmers, truckers, and businesses “should not be left carrying the burden” as prices soar. Highlighting the agreement not to pursue export bans, Macron said “President Trump, in particular, was very clear on this point.” European countries had pushed back against the US threats, against a backdrop of the US-led war in the Middle East and reduced supplies from Russia and China.

The UK was represented at the meeting by Foreign Secretary Ed Miliband, who said the measures would “stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks.” Avoiding a US diesel export ban will offer significant relief to countries reliant on imports of the fuel, including the UK, where prices at the pump topped £2 a litre for the first time on Friday. Over half of the UK’s diesel is imported, with 31% of those imports coming from the US.

The US is one of the world’s leading diesel suppliers, with domestic refineries churning out roughly four to five million barrels every day, according to the US Energy Information Administration. Americans consume about 3.6 million barrels of that. Refiners export the remaining 1.2 to 1.5 million barrels per day, making the US a vital supplier to the global market.

Diesel is used heavily by the haulage industry and in agriculture, meaning rises in the cost of the fuel feed through into essentials such as food. Diesel is harder to refine than petrol and, because of its use in the haulage industry and agriculture, it is very difficult to reduce demand.

The G7 leaders stressed that they will maintain sanctions against Russia amid its ongoing war in Ukraine. The G7 leaders said they will also coordinate maintenance schedules to avoid multiple refineries being shut down at the same time, while encouraging countries with the capacity to do so to ramp up refining of diesel in particular.

The price of global benchmark Brent crude oil briefly dropped below $100 a barrel after the announcement, then rose back to around $102 by Friday evening. Before the US and Israel invaded Iran, it was trading at around $73.