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French President Emmanuel Macron has secured commitments for an additional 200,000 tonnes of diesel per month from the United Arab Emirates (UAE) and Bahrain to ease fuel supply pressure and rising prices in France.
The French presidency announced the agreements on Tuesday, during Macron’s tour of Gulf energy suppliers.
The UAE has committed to supplying about 100,000 tonnes of diesel monthly. Bahrain is expected to provide another 100,000 tonnes per month. With additional supplies from Saudi Arabia, France now has commitments for 295,000 tonnes of diesel monthly. The Elysee Palace said this represents slightly more than 10 per cent of the country’s diesel consumption.
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Macron’s tour of the Gulf aims to secure fuel supplies and reduce prices following a weekend of violent protests over rising living costs in France.
The French president arrived in Manama, Bahrain, on Tuesday. Schoolchildren welcomed him with French and Bahraini flags. His trip also included stops in the UAE, Kuwait and Qatar, which have faced disruption from the US-Iran war that began in February.
The conflict has pushed crude oil prices higher, while Iran’s blockade of the Strait of Hormuz has disrupted a key route for Gulf energy exports. Diesel prices have been hit hardest.
In early October, the Group of Seven (G7) countries, chaired by France this year, agreed to release up to 100 million barrels of oil from strategic reserves to ease market pressure. Kuwait has also made what the French presidency described as “very clear commitments” to supply diesel and kerosene to France’s overseas territories of Mayotte and Reunion in the Indian Ocean.
The shipments will pass through Oman to avoid the Strait of Hormuz, the presidency said. The Elysee Palace said talks were ongoing with regional countries to lower maritime insurance costs. This could make it cheaper for companies to transport larger volumes of fuel through the strait.
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Presidential advisers expressed satisfaction with the amount of diesel secured during the tour. Patrick Pouyanne, chief executive of French energy company TotalEnergies, who is accompanying Macron, said the agreements would “reassure the French”.
“We are not going to run out of diesel in February,” he added.
France has also released 10 million barrels of diesel from its reserves. The government hopes the move will reduce pump prices by 12 to 18 cents per litre, or about five to eight per cent, from next month.
