U.S. Energy Department to Release One Million Barrels of Gasoline to Lower Prices

The U.S. Energy Department’s Office of Petroleum Reserves has announced plans to release one million gas barrels from the Northeast Gasoline Supply Reserve to help lower prices during summer. The department said the initiative is strategically timed to ensure sufficient supply for the tri-state and northeast regions during a period of high demand – between Memorial Day and July 4th, 2024.

The department has issued a solicitation for the sale and liquidation of one million barrels or 42 million gallons, with volumes to be allocated in quantities of 100,000 barrels. This will allow different retailers a chance to purchase and ensure a more even geographical distribution of gas.

Complying with the Consolidated Appropriations Act, gasoline volume will come from two storage sites: 900,000 barrels from Port Reading, New Jersey and 98,824 barrels from South Portland, Maine. Bids are due by May 28.

The Department of Energy established the Northeast Gasoline Supply Reserve in 2014, after the crippling impacts of Superstorm Sandy on Northeastern gas supplies in 2012. Superstorm Sandy left New York gas stations with no supplies for one month and 40 gas terminals in New York Harbon out of commission. The one million barrel buffer would give Northeast consumers emergency fuel for a few days in case of a natural disaster.