The Biden administration said Tuesday that 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, according to the Associated Press.
The sale, from storage sites in New Jersey and Maine, will be allocated in increments of 100,000 barrels at a time. The approach will create a competitive bidding process that ensures gasoline can flow into local retailers ahead of the July 4 holiday and 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. The language 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 six cents from a year ago, according to AAA. Tapping gasoline reserves is one of the few actions a president can take individually to try to control inflation, an election year liability for the party in control of the White House.
The Northeast sale will require that the 42-million-gallon reserve is transferred or delivered no later than June 30, the Energy Department said.
