Gas Prices Reach $3.61; DOE Plans Strategic Gasoline Release

Gas prices have risen to $3.61 per gallon. To help reduce costs, the DOE will release 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve between Memorial Day and July 4.

The national average price of gasoline has risen to $3.61 per gallon, up from $3.54 a year ago. As summer approaches, prices may continue to increase, but relief efforts are underway.

The U.S. Department of Energy’s Office of Petroleum Reserves has announced a plan to sell 1 million barrels (42 million gallons) of gasoline from the Northeast Gasoline Supply Reserve. This action aims to reduce prices at the pump as Americans begin their summer travel. The timing and structure of this sale are intended to maximize its impact on lowering gasoline prices.

U.S. Secretary of Energy Jennifer Granholm stated that the gasoline release will be strategically managed between May 27 (Memorial Day) and July 4. Bids for the gasoline are due on May 28, ensuring that the fuel reaches local retailers ahead of the Fourth of July holiday, contributing to competitive pricing and reduced costs for American families.

The Northeast Gasoline Supply Reserve was established after Superstorm Sandy in 2012, which caused significant damage to refineries and disrupted fuel supply in the New York Harbor area. The reserve was designed to hold one million barrels of gasoline, split between South Portland, Maine, and the New York Harbor area, to prevent future fuel shortages in emergencies.

However, storing gasoline is more expensive than crude oil, prompting the government to consider closing the reserve. The sale of its inventory is a step toward this goal, potentially ending the operation of the Northeast Gasoline Supply Reserve.