Biden Taps Northeast Gas Reserve to Curb Summer Fuel Prices

The Biden administration has announced plans to release 1 million barrels of gasoline from a Northeast reserve that was established after Superstorm Sandy. The goal is to bring down the prices at the pump during the summer season. The sale will be allocated in increments of 100,000 barrels and will come from storage sites in New Jersey and Maine. This approach will create a competitive bidding process to ensure that gasoline can be readily available to local retailers ahead of the July 4 holiday, and at competitive prices, according to the Energy Department.

Gas prices in the United States have averaged around $3.60 per gallon, showing an increase of 6 cents from last year. By tapping into the gasoline reserves, President Biden is aiming to address inflation, which has become a concern for the party in control of the White House in an election year.

Energy Secretary Jennifer Granholm stated that the administration’s focus is on lowering prices at the pump for American families, especially with the upcoming summer driving season. The strategic release of the reserve aims to ensure sufficient supply flows to the tri-state region and the Northeast when it is needed the most by hardworking Americans.

The White House Press Secretary mentioned that the release of gas from the Northeast reserve is part of a wider effort by President Biden to lower gas and energy costs, including historic releases from the Strategic Petroleum Reserve and a significant investment in clean energy.

President Biden had previously depleted the Strategic Petroleum Reserve following Russia’s invasion of Ukraine, which stabilized gasoline prices affected by the conflict. This drew criticism from Republicans who accused the president of using the reserve for political gain instead of national emergencies. The administration has now embarked on refilling the oil reserve, which stood at more than 364 million barrels of crude oil as of last month, lower than levels before the Russia-Ukraine conflict but still the world’s largest emergency crude oil supply.

The sale of gasoline from the Northeast reserve will require that the fuel is transferred or delivered no later than June 30, according to the Energy Department. The administration touts these actions as advancing a more secure, affordable, and clean energy future, providing lower utility bills while also meeting immediate energy needs.

Written by Staff Reports

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