William Simpson
The Biden administration said Tuesday it will release 1 million barrels of gasoline from a Northeast reserve in a move to ease pump prices for drivers.
The Department of Energy said the sale was timed to provide relief at the start of the summer season.
“The Biden-Harris administration is focused on lowering prices at the pump for American families, especially as drivers hit the road for the summer driving season,” U.S. Energy Secretary Jennifer M. Granholm said in a statement. declaration. “By strategically releasing this reserve between Memorial Day and July 4, we are ensuring sufficient supply flows to the Tri-State and Northeast at a time when American workers need it most.”
A gallon of regular gasoline averages about $3.60 nationwide, down from $3.67 in April but up 6 cents from a year ago, according to AAA. Some states face significantly higher prices, with California drivers paying $5.19 per gallon compared to $3.06 in Mississippi, while fuel costs remain volatile in other parts of the US.
Inflation continues to be a major issue for Americans and is in the campaign phase as the November presidential election approaches. According to a recent Gallup Survey41% of Americans cited inflation or the high cost of living as their most pressing financial problem.
The Consumer Price Index pink at an annual rate of 3.4% in April, still considerably warmer than the Federal Reserve’s 2% target. Housing and gas prices accounted for more than 70% of the monthly increase last month.
Domestic gas prices are largely determined by the cost of oil. Other factors include the annual switch from winter fuel blends to summer fuel blends, which typically drives up prices, and other seasonal changes, such as routine maintenance at oil refineries.
This means that presidents have little influence on the cost of gas, other than to occasionally tap into the country’s reserves. In 2022, the Biden administration decided to release 180 million barrels of oil of the country’s Strategic Petroleum Reserve for six months after global oil prices rose following Russia’s attack on Ukraine.
President Barack Obama created the Northeast Gasoline Supply Reserve after Superstorm Sandy in 2012, which damaged two refineries in the region and led to severe gas shortages in some states.
—The Associated Press contributed to this report.
