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Friday, June 14, 2024 | Back issues
Courthouse News Service Courthouse News Service

Biden administration announces sale of nearly a million barrels of gasoline in effort to lower prices

The barrels, from sites in New Jersey and Maine that were established after 2012’s Superstorm Sandy, represent about 42 million gallons of gasoline.

WASHINGTON (CN) — The Biden administration is selling nearly one million barrels of gasoline from a Northeast oil reserve to try lowering prices for the summer.

The barrels, from sites in New Jersey and Maine that were established after 2012’s Superstorm Sandy, represent about 42 million gallons of gasoline.

The roughly 43.8 million estimated travelers expected to head at least 50 miles from home over the Memorial Day weekend won’t benefit from the sale. Officials are taking bids on the barrels through May 28. The oil will be released in quantities of 100,000 barrels with all transfers made by June 30, ahead of the July 4 holiday.

“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,” Energy Secretary of Energy Jennifer Granholm said in a statement. “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.” 

Most of the barrels, 900,000, are coming from Port Reading, New Jersey. An additional 98,824 will be allocated from South Portland, Maine.

Gasoline prices averaged about $3.59 per gallon nationwide on Tuesday, up from $3.53 at this time last year, according to AAA. In the states, it ranges from $3.05 in Mississippi to $5.18 in California.

The measure is part of a requirement from Congress included in a spending deal in March that the federal government sell off the reserve and close it. When he created the reserve, former President Barack Obama was criticized for establishing the stockpile without Congressional approval.

“This builds on other actions by President Biden to lower gas and energy costs — including historic releases from the Strategic Petroleum Reserve and the largest-ever investment in clean energy,” White House press secretary Karine Jean-Pierre said in a statement. “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.”

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Categories / Consumers, Economy, Energy, Government, National, Travel

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