After months of resistance, the Belgian federal government has agreed to draw on its emergency fuel reserves and release 35,000 tonnes of diesel fuel, the equivalent of roughly 260,000 barrels, onto the market as part of the coordinated operation led by the International Energy Agency (IEA).
This is a reversal for Energy Minister Mathieu Bihet (MR), who had long argued that strategic stocks exist to guarantee supply, not to steer prices.
Nevertheless, Belgium "has indeed committed to participating in the international effort to make strategic oil stocks available, as part of the IEA's collective action," his office told Le Soir. It added that the release does not put the country at risk, since the remaining reserves cover "more than 90 days' consumption."
However, Belgian drivers should not expect a relief at the pump, as the released volumes will not fund any discount. At best, the extra supply may ease market tensions slightly.
"Under our legislation, fuel must be sold at market price," the minister's office explained.
France opts for direct price cuts
Just across the border, the approach is very different.
Sébastien Lecornu's centre-right government is gradually releasing diesel from its strategic reserves until January. The diesel was bought before the war in the Persian Gulf began, and it is being sold to distributors at a preferential price on the condition that the discount reaches consumers.
Retailers must also show clearly how much of the cut comes from the release.
The effect was immediate: E. Leclerc cut prices by 21 cents a litre at its 742 stations, and TotalEnergies lowered diesel to €2.15 a litre in its Access network, ten cents below its €2.25 cap.
Limited impact on global prices
The French measure follows an October pledge by the G7 and several EU countries to release around 100 million barrels of oil and diesel.
In March, the IEA had already coordinated the release of more than 400 million barrels, which had no net effect on prices. The October pledge has also yet to make a difference, as prices have mostly followed shipping conditions in the Strait of Hormuz.
Crude fell sharply on Monday, but for geopolitical reasons, as markets are betting that Donald Trump will choose diplomacy over renewed strikes on Iran after Tuesday's US midterm elections.
Oil still trades well above its pre-war level, while Diesel is in worse shape, partly because Ukrainian strikes have damaged Russian refineries. At more than €1.16 a litre at the refinery gate, wholesale diesel costs three times what it did at the end of February.
According to Greenpeace, the surge has given oil companies around €36 billion in windfall profits on petrol and diesel across Europe, including €1.26 billion in Belgium.
