The Biden administration is selling off a million barrels of gasoline from an emergency reserve in a deliberate effort to cut prices ahead of the upcoming holiday weekend.
The Department of Energy (DOE) announced that it has awarded contracts to five energy companies to purchase the barrels the administration is releasing from the Northeast Gasoline Supply Reserve (NGSR), which is part of the federal Strategic Petroleum Reserve (SPR) system. The NGSR releases are intended to “help lower gas prices ahead of the Fourth of July holiday,” according to DOE.
“The Biden-Harris Administration continues to take strategic action to lower prices for American consumers in every aspect of their lives— especially as summer driving season ramps up,” Energy Secretary Jennifer Granholm said of the contracts. “By releasing this reserve ahead of July 4th, we are ensuring sufficient supply flows to the Northeast at a time hardworking Americans need it the most.” (RELATED: ‘Out Of Bullets’: Biden Admin Fears The Return Of $5 Per Gallon After They Drained Strategic Oil Reserves)
Biden Could Dip Into Already-Depleted Oil Stockpile Again As Election Loomshttps://t.co/PIT2n3XG5o
— Daily Caller (@DailyCaller) June 18, 2024
In total, five companies submitted 19 proposals to the agency after it announced its intent to authorize NGSR releases, and each of the five companies ultimately received contracts, according to DOE. The agency is selling the barrels at an average price of $2.34 per gallon.
The releases are intended to alleviate price pressure in Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey and Pennsylvania, according to the DOE. Of all of those states, New Hampshire’s $3.38 currently has the lowest average per-gallon gas price, according to AAA data.
The Biden administration has dipped into energy reserves before in order to address short-term concerns about gas prices. In 2021 and 2022, as elevated gas prices threatened to cause political problems for President Joe Biden and fellow Democrats ahead of midterm elections, the administration authorized the release of about 180 million barrels of oil onto the open market, several million of which were purchased by Chinese entities.
The SPR is now around its lowest levels in approximately 40 years, according to U.S. Energy Information Administration data. The DOE has subsequently made efforts to refill the reserve, though oil prices have sometimes exceeded the administration’s target price for restock purchases.
The DOE did not respond immediately to a request for comment.
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