The Biden administration plans to release 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve to help lower prices at the pump ahead of the busy summer driving season, according to a statement from the White House.
The Department of Energy confirmed that the gasoline will be released in 100,000-barrel increments to support a competitive bidding initiative aimed at reducing gas prices. The gasoline will be sold from storage facilities in Maine and New Jersey, with retailers and terminals receiving the supply by June 3.
The Department of Energy announced that retailers and terminals will receive the 42 million gallons of gasoline by June 3 at the latest.
Energy Secretary Jennifer Granholm stated that the strategic release of gasoline will take place between Memorial Day and the Fourth of July.
“The Biden-Harris Administration is laser focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,” Ms. Granholm said, adding that the White House is “ensuring sufficient supply flows to the tri-state and northeast at a time hardworking Americans need it the most.”
The Northeast Gasoline Supply Reserve was established in 2012 in response to the severe damage Hurricane Sandy inflicted on refineries.
The Energy Information Administration (EIA) reports that total domestic gasoline inventories currently amount to 227.8 million barrels.
The announcement follows a statement made by President Biden’s top economic adviser, Lael Brainard, at Semafor’s World Economy Summit last month, where she assured that the White House would “make sure gas prices remain affordable.”
“There are, of course, things that have been done in the past, and we’ll continue to very closely monitor, make sure that gas prices remain affordable for so many American families going into the summer driving season,” Ms. Brainard said.
American officials affirm that the recent action aligns with President Joe Biden’s efforts to reduce energy expenses, which include tapping into approximately 40 percent of the Strategic Petroleum Reserve.
According to EIA data, emergency stockpiles reached 367.811 million barrels for the week ending May 10, marking the highest level since April 2023.
In April, the Biden administration suddenly scrapped plans to refill emergency oil reserves, citing higher oil prices.
The White House also took a swipe at congressional Republicans in the latest announcement.
“While Congressional Republicans fight to preserve tax breaks for Big Oil at the expense of hardworking families, President Biden is advancing a more secure, affordable, and clean energy future to lower utility bills while record American energy production helps meet our immediate needs,” Karine Jean-Pierre press secretary said in a statement.
Gas prices are 2 percent higher compared to a year ago.
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