Biden releases 1 million barrels of gasoline from his Northeast reserve in an effort to lower prices

WASHINGTON– The Biden administration announced Tuesday it would release 1 million barrels of gasoline from a Northeast reserve established after Superstorm Sandy in an effort to lower prices at the pump this summer.

The sale, from storage sites in New Jersey and Maine, will be distributed in increments of 100,000 barrels at a time. This approach will create a competitive bidding process that will ensure gasoline can get to local retailers before the July 4 holiday and sold at competitive prices, the Department of Energy said. The move 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, up 6 cents from last year, according to AAA. Tapping gasoline reserves is one of the few steps a president can take himself to try to control inflation, an election-year responsibility for the ruling party in 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,” said Energy Secretary Jennifer Granholm, in the press release. “By strategically releasing this reserve between Memorial Day and July 4, we are ensuring sufficient supply flows to the Tri-State (region) and the Northeast 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 costs and energy – including the historic releases of the Strategic Petroleum Reserve and the largest investment ever made in this area. clean energy.”

Biden significantly depleted strategic oil reserves in 2022 after Russia’s invasion of Ukraine, bringing stocks to their lowest level since the 1980s. The election-year decision helped stabilize oil prices. gasoline that had increased in the wake of the war in Europe, but sparked complaints from Republicans that the Democratic president was playing politics with a reserve intended for national emergencies.

The Biden administration has since begun replenishing oil reserves, which contained more than 364 million barrels of crude as of last month. The total is below pre-war levels between Russia and Ukraine, but it still constitutes the world’s largest emergency supply of crude oil.

The Northeast sale will require the fuel to be transferred or delivered no later than June 30, the Energy Department said.

“While Congressional Republicans fight to preserve tax breaks for Big Oil at the expense of hard-working families, President Biden is advancing a safer, more affordable, and cleaner energy future to lower utility bills , while record U.S. energy production helps meet our immediate needs,” Jean-Pierre said.