Biden Releasing 1-Million Barrels Of Gasoline To Lower Pump Prices

The Biden administration said it is releasing 1 million barrels of gasoline from a Northeast reserve established after Superstorm Sandy in a bid to lower prices at the pump this summer, Matthew Daly and Shelley Adler reported for the Associated Press (AP).

The sale of 1 million barrels, about 42 million gallons, was timed to provide relief for motorists as the summer driving season begins.

The sale, from storage sites in New Jersey and Maine, will be allocated in increments of 100,000 barrels at a time.

This approach will create a competitive bidding process to ensure gasoline flows to local retailers ahead of the July 4 holiday and is sold at competitive prices, the Energy Department said.

The move, which the department said is intended to help “lower costs for American families and consumers,” follows a mandate from Congress to sell off the 10-year-old Northeast reserve and then close it.

This mandate was included in a spending deal Congress approved in March to avert a partial government shutdown.

The Energy Department said the sale of 1 million barrels, about 42 million gallons, was timed to provide relief for motorists as the summer driving season begins. Gasoline prices average about $3.60 per gallon nationwide, up 6 cents from a year ago, according to the American Automotive Association (AAA).

Tapping gasoline reserves is one of the few actions a president can take independently to try to control inflation, a key concern in an election year for the party in control of the White House.