Biden to release 1 million barrels of gasoline to reduce prices at the pump ahead of July 4

Energy
Wednesday, May 22nd, 2024 4:28 pm EDT

The Biden administration has announced a strategic move to release 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve in an effort to boost fuel supplies and ease rising prices at the pump ahead of the July 4th holiday and summer driving season. This decision aims to address the recent surge in gasoline prices, which have been influenced by various factors, including refinery maintenance, geopolitical tensions, and seasonal demand.Energy Secretary Jennifer Granholm stated that by carefully timing the release of these reserves between Memorial Day and July 4th, the administration is securing a steady gasoline flow to the tri-state and northeastern regions when it matters most for American families. The Department of Energy (DOE) emphasized that the release would be conducted through a competitive bidding process, with quantities of 100,000 barrels allocated to ensure maximum price impact at the pump.Granholm further explained that the priority is to ensure hardworking Americans have access to affordable and reliable energy during this busy summer season. By releasing these reserves, the administration is taking decisive action to address current market conditions and maintain a strong and resilient energy infrastructure.The 1 million barrels of gasoline will be distributed to retailers and terminals no later than June 30, 2023, from storage sites in New Jersey and Maine. These sites are part of the Northeast Gasoline Supply Reserve, which was established after Superstorm Sandy knocked out refineries in 2012.This intervention marks the latest in a series of steps taken by the Biden administration to address energy market volatility and ensure energy security for American consumers. The administration has previously announced the release of 50 million barrels of oil from the Strategic Petroleum Reserve and the expansion of renewable energy production to mitigate reliance on fossil fuels.The move comes as gasoline futures have rallied 19% this year due to factors such as OPEC cutting production and fears that the Israel-Hamas conflict could disrupt Middle East supplies. While gas prices have eased in recent weeks, broader inflation has remained stubborn, irking consumers. The national average for gasoline prices was $3.59 per gallon on Tuesday, about 4 cents higher than the year-ago average but lower than last month, according to AAA.The Biden administration’s decision to tap into the Northeast reserves is one of the few actions a president can take unilaterally to try to control inflation, which has become an election year liability for the party in control of the White House. White House Press Secretary Karine Jean-Pierre stated that the release builds on 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.The Strategic Petroleum Reserve, separate from the Northeast reserves, has fallen to its lowest level in decades after the Biden administration released 180 million barrels in 2022 following Russia’s invasion of Ukraine. The administration has since begun refilling the oil reserve, which had more than 364 million barrels of crude oil as of last month.Overall, the Biden administration remains committed to working with industry partners, international allies, and domestic stakeholders to ensure a stable and secure energy future for all Americans. The strategic release of these Northeast reserves aims to inject much-needed competition into the market and help stabilize prices for consumers in the affected regions during the critical summer driving season.

For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/21/biden-to-release-1-million-barrels-of-gasoline-to-reduce-prices-at-the-pump-ahead-of-july-4.html