European Union nations are initiating a coordinated discharge of emergency energy reserves to help mitigate the cost of fuel for consumers across the region. Member states will inject 42.6 million barrels of oil from strategic storage into the market over the next three months, with 50% of that volume consisting of diesel, EU Commissioner Jorgensen said. The move is part of a G7 commitment to release up to 100 million barrels to stabilize prices following a 400 million barrel IEA-coordinated release in March.
France will contribute 10 million barrels of diesel to the effort, with the fuel hitting the market in the coming days. To ensure the lower cost reaches motorists, the French government is providing the reserves at a production average of roughly 28 euro cents per liter and has exempted fuel distributors from the requirement to refill the strategic stocks. The measure is projected to reduce diesel prices by 12 to 18 cents per liter at the pump.