Yahoo News Biden Releasing a Million Barrels of Gasoline ahead of Summer Holidays
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The Biden administration said Tuesday it is releasing nearly one million barrels—or about 42 million gallons—of gasoline from the Northeast Gasoline Supply Reserve before the summer holidays.
The gasoline is stored at sites in New Jersey and Maine and will be released before June 30, 2024, in increments of 100,000 barrels.
President Biden said this is an attempt by the administration to "lower costs for American families" and follows a congressional mandate to sell the 10-year-old reserve.
The Biden administration said Tuesday it is releasing nearly one million barrels of gasoline in an effort to curb stubbornly high gas prices before the summer holidays. The sale, totaling 998,824 barrels, comes from the Northeast Gasoline Supply Reserve (NGSR), which was created to service the northeastern United States following Superstorm Sandy.
"By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state and Northeast at a time hardworking Americans need it the most," said U.S. Secretary of Energy Jennifer M. Granholm.
According to the Department of Energy, the barrels come from storage sites in New Jersey and Maine and will be delivered to awarded retailers and terminals no later than June 30. The move is an attempt by the administration to "lower costs for American families and consumers," while also following a congressional mandate to sell off the 10-year-old reserve.
It's common for gas prices to increase in the first half of the year as the weather turns warmer and people drive more, though prices have risen more than usual, as the Wall Street Journal notes. While the addition of the NGSR supply may have a small effect on gas prices, the transparent volume of gasoline consumed by Americans dwarfs any impact it may have. According to the U.S. Energy Information Administration, the United States averaged 8.9 million barrels (376 million gallons) of gasoline each day in 2023.
The move also comes in the middle of an election year, while the Biden administration and the Federal Reserve battle against inflation. According to AAA, gasoline prices average about $3.60 per gallon nationwide, putting them up six cents compared to the same time last year. Releasing oil or gasoline from national reserves is one of the few ways a president can directly impact inflation or pricing at the pump.
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