France to Release 10 Million Barrels of Diesel From Strategic Reserves

Prime Minister Sebastien Lecornu announced on Wednesday that France will release ten million barrels of diesel from its strategic stockpiles, in response to supply tensions and soaring energy prices linked to the wars in Iran and Ukraine. The move puts into practice the commitment made by Emmanuel Macron to mobilize the country's strategic reserves in the face of the energy crisis.

According to the government, the release will take place over the next three months and is expected to lower prices at the pump by roughly 12 to 18 cents per liter of diesel. France currently holds 50 million barrels of diesel in its strategic reserves, and officials estimate the three month drawdown should cover close to a fifth of projected demand over that period. The diesel released will be made available to distributors operating across the country.

The announcement follows the emergency G7 meeting convened on Friday by Emmanuel Macron, at which member countries agreed to mobilize their respective strategic reserves in a coordinated manner, in an effort to curb the rise in oil prices driven by tensions in the Middle East, particularly around the Strait of Hormuz, and by the continuing war in Ukraine.

The move comes against an already tense domestic backdrop, as the student protest movement continues to shake the country and the government simultaneously tries to push through its 2027 budget, with public debt nearing 122 percent of GDP. The release of diesel stocks appears aimed at easing the strain on drivers' purchasing power, at a moment when the government is trying to calm several fronts of discontent at once.

It remains to be seen whether the measure will be enough to durably curb rising pump prices, with global oil markets still under strain as the ongoing conflicts show no sign of resolution.

This account draws on reporting by Africanews and CNBC.