UK diesel prices have risen above £2 a litre as the G7 group of advanced economies agreed to release 100 million barrels of oil and diesel to head off further price spikes.
Key facts
- UK diesel prices have topped £2 a litre.
- G7 countries agreed to release 100 million barrels of oil and diesel.
- The coordinated release aims to head off further price spikes.
- The move is intended to avoid a ban on US diesel exports threatened by President Trump.
- Global energy prices have been soaring amid the US and Israel's war on Iran and Russia's war on Ukraine.
UK diesel prices have climbed above £2 a litre, according to the BBC, as the G7 group of advanced economies agreed to a substantial release of fuel reserves. The £2 threshold was crossed as the group confirmed the coordinated action.
The G7 agreed to release 100 million barrels of oil and diesel, a move the BBC reports is aimed at heading off further price spikes. The coordinated release also seeks to avoid a ban on US diesel exports.
According to the BBC, the release followed a threat from US President Donald Trump relating to a ban on US diesel exports. The coordinated action by the group is intended to prevent such a ban from taking effect.
Global energy prices have been soaring, according to Al Jazeera, due to the US and Israel’s war on Iran and Russia’s war on Ukraine. These conflicts have placed significant upward pressure on the cost of fuel worldwide.
Al Jazeera has questioned whether the release of 100 million barrels will be enough to curb prices, raising the issue of how effective the coordinated measure will be in bringing relief to motorists and businesses.
Why it matters
Diesel passing the £2-a-litre mark raises costs for drivers, hauliers and the wider supply chain, which can feed through to the price of goods. The G7's coordinated release reflects international concern over soaring energy prices driven by ongoing conflicts.
Frequently asked questions
How much oil and diesel will the G7 release?
The G7 agreed to release 100 million barrels of oil and diesel, according to the BBC and Al Jazeera.
Why are the G7 releasing fuel reserves?
The coordinated release is aimed at heading off further price spikes and avoiding a ban on US diesel exports, according to the BBC. It follows an export ban threat from President Trump.
Why have energy prices been rising?
According to Al Jazeera, global energy prices have been soaring due to the US and Israel's war on Iran and Russia's war on Ukraine.