On June 22, 2022, U.S. President Biden delivered a speech on efforts to reduce high gas prices in the South Court Auditorium of the Eisenhower Executive Office Building in Washington, DC.
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The Biden administration will release 1 million barrels of gasoline from reserves in the Northeast to lower prices at the pump ahead of the July 4 holiday and summer driving season.
“By strategically releasing this reserve between Memorial Day and the Fourth of July, we will ensure that hard-working Americans Providing adequate supplies to the tri-state (region) and the Northeast when people need it most.
Gasoline futures are up 19% this year as oil prices rise due to supply disruptions due to OPEC production cuts and concerns that a war between Israel and Hamas could spark a wider Middle East conflict. Rising energy prices in April fueled speculation that the Biden administration could tap strategic petroleum reserves in Texas and Louisiana ahead of the November presidential election.
White House national economic adviser Lael Brainard said last month that the government would “ensure that natural gas prices remain affordable.”
But natural gas prices have retreated in recent weeks as oil prices have retreated from their April highs when traders raised crude futures on worries that Israel and OPEC member Iran were on the brink of war.
The national average price at gas stations on Tuesday was $3.59 a gallon, about 4 cents higher than the average price a year ago but lower than last month, according to AAA. Although gasoline prices have declined over the past month, overall inflation remains stubborn, troubling consumers.
Retailers and terminals will receive gasoline by June 30, according to the Energy Department. According to the U.S. Department of Energy, the supply will be released in quantities of 100,000 barrels to ensure a competitive bidding process and maximize the impact on gas station prices.
The barrels will be sold from storage sites in New Jersey and Maine that are part of the Northeast Gasoline Supply Reserve, which was established after Superstorm Sandy devastated refineries in 2012.
The gasoline sales come as separate strategic petroleum reserves have fallen to their lowest levels in decades. The Biden administration released 180 million barrels of oil from the Strategic Petroleum Reserve in 2022 as energy prices surged following Russia’s invasion of Ukraine.
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