Gas prices are 2 percent higher compared to a year ago.
The U.S. administration will release 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve to reduce pump prices ahead of the busy summer driving season, according to a statement sent by the White House.
Supplies will be released in 100,000-barrel quantities to facilitate a competitive bidding initiative to help curb gas prices, the Department of Energy confirmed. Gasoline will be sold from storage facilities in Maine and New Jersey, and retailers and terminals will receive the gas no later than June 3.
The Department of Energy noted that retailers and terminals will receive the 42 million gallons of gasoline no later than June 3.
Energy Secretary Jennifer Granholm noted that the strategic action will occur between the Memorial Day and Fourth of July holidays.
“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 after Hurricane Sandy decimated refineries.
According to the Energy Information Administration (EIA), total domestic inventories of gasoline stand at 227.8 million barrels.
The announcement comes a month after President Biden’s top economic adviser, Lael Brainard, told Semafor’s World Economy Summit 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.
U.S. officials say that the latest measure complements other ways President Joe Biden has helped lower energy costs, including drawing down on roughly 40 percent from the Strategic Petroleum Reserve.
Emergency stockpiles totaled 367.811 million barrels for the week ending May 10, the highest level since April 2023, EIA data show.
By Andrew Moran
