US Government Releases 42 Million Gallons of Gasoline to Reduce Fuel Prices

The U.S. government is set to release 42 million gallons of gasoline from the Northeast Gasoline Supply Reserve. This decision aims at driving down high fuel prices, particularly as the summer season approaches. Located in South Portland, Maine and New York Harbor, the reserve was initially established post-Superstorm Sandy in 2014.

The U.S. Department of Energy’s Office of Petroleum Reserves announced plans to sell 1 million barrels of gasoline stored in this reserve. An official statement highlighted that these sales are "strategically timed and structured to maximize its impact on gasoline prices." This measure is taken as a response to current fuel prices which have risen over the past year, with the national average now at $3.61 per gallon, up from $3.54 last year.

U.S. Secretary of Energy Jennifer Granholm shared details about the timing and execution of this release. The gasoline will be available between May 27 (Memorial Day) and July 4, with bids for purchase due by May 28. Granholm emphasized that this initiative would allow "product can flow into local retailers ahead of the Fourth of July holiday" and will be sold at competitive rates which should help lower costs for American families and consumers.

The timing of this gas release is critical as it coincides with Memorial Day leading up to Independence Day — a period typically marked by increased travel and subsequently higher fuel demand.

Source: Reuters