Can emergency reserves ease the diesel crisis?

The G7 plans to release emergency fuel stocks as diesel shortages raise transport costs and squeeze household budgets.

From delivering goods to harvesting crops, much of the world’s economic activity depends on diesel fuel.

When it becomes scarce or expensive, the impact reaches far beyond the pump to food prices, household budgets and economic growth.

Right now, prices have hit record highs.

Supply has tightened as the United States-Israel war on Iran disrupts shipping through the Strait of Hormuz, Ukrainian attacks damage Russian refineries and China reportedly curbs its exports.

The Group of Seven has agreed to release 100 million barrels of oil and diesel from its emergency stockpiles over four months. That amount equates to about one day of global oil demand.

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