France’s Minister of Economy, Finance and Industrial, Energy and Digital Sovereignty Roland Lescure said European countries will release over 42 million barrels from reserves over three months, with half in diesel, for temporary relief.
At an EU energy ministers' meeting in Luxembourg on Thursday, Oct. 29, Lescure said France would contribute 10 million barrels of diesel. He said the fuel would begin entering the French market within days.
France will offer its barrels to distributors at the price they paid before the crisis, according to an Oct. 7 government statement. The government forecasts that the program will lower diesel prices by 12 to 18 euro cents per liter for three months. It expects the reductions to start reaching fuel stations Sunday, Nov. 1, and continue through January.
The government says the program is intended to help motorists and businesses, including farmers, fishers and construction firms. In an Oct. 22 announcement, France also said it would cover interest on eligible loans of up to €5,000 per station for independent rural stations and stations in overseas departments. France plans to replenish its reserves gradually after the crisis, depending on market conditions.
France's Treasury has linked supply and transport pressures to the Strait of Hormuz crisis. It said the cost of moving a ship from the Persian Gulf had increased tenfold since the conflict began.
Separately, the Group of Seven (G7) called Oct. 2 for a coordinated, International Energy Agency (IEA)-supported release of 100 million barrels over four months to carry out commitments made in March. The IEA's March action began on March 11, when its 32 member countries agreed to make 400 million barrels available amid oil-market disruptions linked to the Middle East conflict.
The IEA said Oct. 15 that about 330 million barrels had been released under that action and around 100 million remained. The agency said the total may exceed 400 million barrels because some members had released, or planned to release, more than they originally pledged.
