WASHINGTON – The Biden administration said Tuesday it is releasing 1 million barrels of gasoline from a Northeast reserve established after Superstorm Sandy in a bid to lower pump prices this summer.
The sale, from storage sites in New Jersey and Maine, will be allocated in increments of 100,000 barrels at a time. The approach will create a competitive bidding process that will ensure gasoline can reach local retailers before the Fourth of July holiday and be sold at competitive prices, the Department of Energy said. The measure aims to help “reduce costs for American families and consumers,” the department said in a statement.
Gas prices averaged about $3.60 per gallon nationwide Tuesday, an increase of 6 cents from a year ago, according to AAA. Tapping gasoline reserves is one of the few actions a president can take alone to try to control inflation, an election-year responsibility for the party that controls the White House.
“The Biden-Harris administration is focused on lowering prices at the pump for American families, especially as drivers hit the road for the summer driving season,” Energy Secretary Jennifer Granholm said in the statement. “By strategically releasing this reserve between Memorial Day and July 4, we are ensuring sufficient supply flows to the tri-state (area) and the Northeast at a time when American workers need it most.”
White House press secretary Karine Jean-Pierre said the release of gas from the Northeast reserve builds on actions by President Joe Biden, a Democrat, “to reduce gas and energy costs – including historic releases from Strategic Petroleum Reserve and the largest investment ever in clean energy.”
Biden significantly drained the Strategic Petroleum Reserve in 2022 following Russia’s invasion of Ukraine, lowering reserves to their lowest level since the 1980s. The election-year move helped stabilize gasoline prices that had been rising after the war in Europe, but it prompted complaints from Republicans that the Democratic president was playing politics with a reserve earmarked for national emergencies.
The Biden administration has since begun replenishing the oil reserve, which had more than 364 million barrels of crude oil as of last month. The total is lower than pre-war levels between Russia and Ukraine, but still represents the world’s largest emergency supply of crude oil.
The sale to the Northeast will require the fuel to be transferred or delivered by June 30, the Department of Energy said.
“While Congressional Republicans fight to preserve tax breaks for Big Oil at the expense of working families, President Biden is promoting a safer, more affordable and cleaner energy future to reduce utility bills, while record production of American energy helps meet our immediate needs,” Jean-Pierre said.
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