Europe is launching a fresh intervention to bring fuel prices down, releasing 42 million barrels of oil from its strategic reserves over the next three months.

The announcement was made today by France’s Economy Minister, Roland Lescure, shortly before a meeting of European Union energy ministers in Luxembourg. He clarified that half of the volume being released onto the market would consist of diesel.

The European initiative forms part of commitments made by the Group of Seven (G7) countries, which agreed last month to release up to 100 million barrels of oil. The move marks the completion of a coordinated release of 400 million barrels organised by the International Energy Agency (IEA), which began in March.

France to release 10 million barrels of diesel in coming days

Lescure announced that France would release 10 million barrels of diesel onto the market in the coming days, implementing the release it announced last month.

According to the French minister, the first effects of the intervention on prices are expected to become apparent as early as next week.

Fuel from strategic reserves will be sold on the market at cost price. Lescure estimates that the move could lead to a reduction of 12 to 18 cents per litre.

Further releases of strategic reserves remain an option

The French minister placed particular emphasis on the diesel market, describing it as a critical factor in tackling the energy crisis.

“Diesel is at the centre of the challenges we face,” he said.

He also expressed hope that the current crisis would be overcome “slowly but steadily”, while stressing that Europe was keeping the option of further releases from its strategic reserves open should circumstances require it.