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Fuel prices have surged globally, driven primarily by the US-Israel war on Iran, disruptions in the Strait of Hormuz and the ongoing Russia-Ukraine conflict.
World leaders pose for a family photo at the G7 Summit. (Reuters)
France is pushing for coordinated G7 action to address rising fuel prices and concerns over global oil supplies, with a videoconference of G7 leaders planned soon. The move comes as fuel prices have surged across several countries amid disruptions to oil flows, refinery shortages and wider geopolitical risks.
A French diplomatic source said the President of the Republic spoke overnight with US President Donald Trump about the global energy situation. The discussion focused on the need for countries to work together to tackle rising fuel prices and ensure the availability of refined products worldwide.
The French President also spoke with Canadian Prime Minister Mark Carney on the same issues.
France seeks G7 coordination
France, which holds the G7 presidency this year, is working with the International Energy Agency (IEA) and plans to convene a videoconference of G7 leaders “as soon as possible”.
According to the French diplomatic source, the meeting will focus on coordinating measures to ease pressure on prices and secure supplies of crude oil and refined products among G7 countries and globally.
Coordination is also taking place at the European level.
At A Glance
France is pushing for coordinated G7 action to address rising fuel prices and concerns over global oil supplies.
A videoconference of G7 leaders is planned soon to coordinate measures to ease pressure on prices and secure supplies.
In the United States, diesel prices reached around $6.52 per gallon, and petrol stood at around $4.43 per gallon.
In the UK, diesel crossed £2 per litre for the first time, with the RAC reporting diesel at 200.01 pence per litre.
US households spent an additional around $117 billion on petrol and diesel between March and September 2026 compared with the same period a year earlier.
The French President stressed that G7 countries share a common interest in acting together and without export restrictions.
Why are fuel prices rising?
Fuel prices have surged globally, driven primarily by the US-Israel war on Iran, disruptions in the Strait of Hormuz and the ongoing Russia-Ukraine conflict. These developments have pushed crude oil prices above $100 per barrel, while diesel and petrol prices have reached record levels in several countries. The price surge has also contributed to inflation, protests and emergency policy measures. Oil flows through the Strait of Hormuz have fallen to below 15 per cent of prewar levels since the US and Israel launched strikes on Iran in February 2026. The disruption has tightened global supply and pushed crude prices from around $65 to above $100 per barrel.
Refinery shortages add to pressure
Refinery and refined-product shortages have also affected fuel supplies, particularly diesel. Ukrainian strikes on Russian refineries, Chinese restrictions on refined fuel exports and wider refinery bottlenecks have added pressure to diesel supplies worldwide. Markets are also pricing in the risk of further geopolitical escalation. This has kept upward pressure on prices even where physical oil flows have been partially rerouted.
Fuel prices hit records
In the United States, diesel prices reached around $6.52 per gallon, a record, while petrol stood at around $4.43 per gallon. Forty-seven states saw record diesel prices in late September, with diesel up around 74-76 per cent year-on-year. In the UK, diesel crossed £2 per litre for the first time. The RAC reported diesel at 200.01 pence per litre, while petrol was around 174.7 pence per litre. Prices are expected to rise further.
Eurozone inflation reached 3.8 per cent, a three-year high, with energy prices rising 18.8 per cent year-on-year. Fuel and gas costs were the main drivers, while France also witnessed protests over record prices.
Poland recorded petrol at 8.19 zł per litre and diesel at 9.14 zł per litre. In the Philippines, fuel price protests led to demands for prices to be rolled back to 55 pesos per litre. The country declared a national energy emergency in March. Germany’s headline inflation was around 3.3 per cent year-on-year, close to a three-year high, with higher petrol prices contributing to the rise.
Rising fuel costs hit households
Higher fuel prices are increasing transport, food and other household costs. US households spent an additional around $117 billion on petrol and diesel between March and September 2026 compared with the same period a year earlier. Fuel price increases have also triggered protests, driver strikes and blockades in countries including Syria, Guatemala, Portugal, Indonesia, Spain, France and the Philippines.
Governments have responded with various measures. Poland enacted a windfall tax to lower pump prices, while the European Union allocated €540 million to compensate farmers affected by higher energy and fertiliser costs.
What happens next?
The proposed G7-IEA coordination will be closely watched for possible joint measures, including stock releases and supply coordination, which could help ease near-term price increases.
Developments around the Strait of Hormuz will also remain important. Further escalation or a prolonged disruption could keep crude and diesel prices elevated, while de-escalation could ease price pressures. Changes in Russian refinery operations, Chinese export policies and refinery utilisation in Europe and the US will also influence diesel availability.
Quick Answers
Ask News18Fuel prices surged globally due to the US-Israel war on Iran, disruptions in the Strait of Hormuz, and the ongoing Russia-Ukraine conflict, which caused crude oil to surpass $100 per barrel and reduced oil flows significantly.
Ask News18About the Author
Shuddhanta Patra is an Indian journalist with about nine years of experience in covering national politics, geopolitics, defence, diplomacy and international affairs. Her reporting focuses on South As…Read More
October 02, 2026, 8:02 pm IST
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