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America October 3, 2026 6 mins read

Diesel Crisis: G7 Deal Leaves Questions About New Supply

America ı By Michallie K Harrison

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President Donald Trump and other world leaders pose at the June 2026 G7 summit in Évian-les-Bains, France.

WASHINGTON — The G7’s response to the diesel crisis includes a plan to release 100 million barrels of oil and fuel. However, governments have not clarified how much represents additional supply beyond earlier commitments.

The International Energy Agency’s latest figures show that members have released approximately 325 million of the 400 million barrels pledged in March. That leaves about 75 million barrels outstanding from the earlier commitment.

Meanwhile, diesel prices continued easing Saturday in Louisiana and Alabama, although both states remained well above last year’s levels. Louisiana’s average stood at $5.87 a gallon, while Alabama’s was approximately $6.00, according to AAA.

For farmers and truckers, the announcement offers a potential source of relief during harvest season. Nevertheless, the timing and composition of the releases will help determine how much fuel reaches buyers.

Related coverage: Diesel Crisis: Louisiana Relief Meets New Export Threats

What the G7 diesel agreement promises

Under the G7 joint statement issued Friday, releases would begin immediately and continue over four months. A substantial portion of the diesel release would occur during the first 20 days.

Leaders also agreed to coordinate refinery maintenance to avoid simultaneous shutdowns and temporarily increase production where feasible. Additionally, they encouraged countries with significant refining capacity to increase output, particularly diesel.

However, the 100 million-barrel figure covers crude oil and refined products. Officials have not provided a final breakdown identifying how much will be diesel or specifying individual countries’ contributions.

IEA Executive Director Fatih Birol said Friday that distribution arrangements would be finalized after consultations with member countries. He also said further reserves could be released if necessary, Reuters reported.

Earlier reserve commitments complicate the total

The IEA’s latest account of the G7 meeting says countries have delivered more than 80% of the emergency release announced March 11.

That figure provides a clearer measure of earlier deliveries. However, it does not resolve whether Friday’s agreement includes the remaining March commitments.

Agence France-Presse reported Saturday that the G7 had not specified whether the outstanding 75 million barrels were included in the new headline figure. Consequently, describing the agreement as 100 million entirely additional barrels would go beyond the information released.

The IEA also identified continuing pressure on diesel supplies. Although Middle Eastern crude exports have recovered significantly, refined-product shipments remain severely constrained, the agency said. Ukrainian attacks on Russian refineries have further tightened the diesel market.

Trump rules out an export ban

President Donald Trump said Friday that the United States would not impose a diesel export ban following the G7 agreement.

“We’re not going to be doing the export ban,” Trump told reporters at the White House, according to The Associated Press.

Meanwhile, G7 leaders reaffirmed their commitment to avoid energy export restrictions among member countries. They also called on other producers to refrain from imposing bans.

Separately, Reuters reported Friday that the White House was preparing a diesel relief executive order that could be announced the following week. Citing two people familiar with the process, Reuters said the proposal could expand dyed diesel use and include other tax changes.

The details remained under development and could change. The reported proposal therefore should not be treated as an enacted federal waiver.

Louisiana and Alabama prices edge lower

Saturday’s figures show modest price declines, although fuel remains substantially more expensive than it was a year ago.

AAA’s Louisiana tracker showed an average of $5.869 a gallon on Oct. 3, down from $5.8848 Friday. The price was approximately 11 cents below the previous week’s average.

Nevertheless, Louisiana diesel remained about 77% above its year-earlier average of $3.3204. Buying 100 gallons at those averages would cost approximately $255 more than a year earlier.

Similarly, Alabama’s average fell to $6.003 from $6.0199 Friday. That was about 11 cents below the previous week but roughly 74% above the year-earlier average of $3.444.

For an Alabama buyer purchasing 100 gallons, the difference amounts to approximately $256. Both states remain below their September records, but the daily figures alone cannot establish that the G7 announcement caused the latest declines.

How quickly could the diesel crisis ease?

Michael Lynch, a distinguished fellow at the Energy Policy Research Foundation, told AP that U.S. diesel prices could fall 25 to 50 cents a gallon after a few weeks. European reserve releases could reduce demand for American exports, he said.

That remains a forecast, rather than a guaranteed reduction for Louisiana or Alabama.

The type of fuel released also affects the timing. Finished diesel can move into distribution without further refining, while crude oil must first be processed.

As Euronews reported, refinery capacity, transportation logistics and the type of crude available will influence the amount of usable diesel reaching consumers. Therefore, the size of the reserve announcement alone does not establish how quickly local prices will fall.

Harvest expenses remain elevated

Meanwhile, farmers are buying fuel at prices far above those used to prepare their production budgets.

The Alabama Cooperative Extension System reported farm diesel averaging $5.42 a gallon during the week ending Sept. 18. That compared with an average of $2.73 during January and February.

Those agricultural figures cover a different market and reporting period from AAA’s current retail averages. However, they illustrate how sharply costs rose after many farmers planned this year’s operations.

An analysis by Auburn University researchers Adam Rabinowitz and Sthefani Oliveira estimated approximately $247 million in additional harvesting costs across 13 Southern states. The analysis covered corn, cotton, peanuts and soybeans.

Because diesel powers harvesting equipment and other machinery, the timing of any sustained price decline matters for producers already working through the season.

State relief has separate requirements

Louisiana and Alabama have already taken state-level action to help agricultural and timber operators obtain fuel.

Louisiana’s temporary penalty relief applies to specified highway uses of dyed diesel in eligible Class 2 forest products vehicles and Class 5 farm vehicles. The relief runs from Sept. 23 through Oct. 22.

However, operators still face a tax requirement. The Louisiana Department of Revenue’s guidance says the operator or seller must pay the applicable 20-cent-per-gallon state excise tax for the operator to qualify for penalty relief.

In Alabama, Gov. Kay Ivey directed the Alabama Law Enforcement Agency on Sept. 24 to halt dyed diesel enforcement for 120 days. The action was intended to support agricultural and timber communities.

Ivey also instructed the state’s revenue commissioner to request IRS penalty relief. That request is separate from the state enforcement directive and does not itself establish federal approval.

For the international release, the next scheduled checkpoint is an IEA assessment of implementation and market effects. G7 leaders requested that report before the end of the first 20 days, providing an opportunity to measure deliveries against the commitments.

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Michallie K Harrison

Michallie K. Harrison is a journalist, communications professional, and retired U.S. Army sergeant first class with 21 years of service, including three combat tours. She covers politics, public policy, law, technology, and national security for USA Herald, with particular attention to government accountability, civil liberties, and the effects of policy on everyday Americans. Her military background brings firsthand experience in leadership, aviation operations, and chemical defense to her reporting on defense and veterans’ issues. Harrison holds a Bachelor of Arts in Communications from National University and a Bachelor of Arts in Liberal Studies from Excelsior College, with minors in history and criminal justice. Her work has appeared in Responsible Statecraft, and she writes about veterans’ benefits for Hill & Ponton. She also brings experience hosting live public affairs discussions and engaging a social media audience of nearly 200,000 followers. Harrison is committed to making complex issues understandable and asking direct questions about how power is exercised and whom it serves.

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