Biden administration announces sale of 1 million barrels of gas

The Biden administration announced Tuesday the sale of 1 million barrels of gasoline from a strategic stockpile in an effort to reduce costs for Americans ahead of the July 4 holiday.

According to the American Automobile Association, a record 71 million Americans are expected to travel during the July 4 weekend, up 5% from 2023 and 8% from 2019.

According to AAA, the majority of travelers (85%) will drive to their destinations, and most Americans will see lower gas prices than last year. The average price of a gallon of gas is $3.49, according to AAA, down from $3.53 last year. According to AAA’s analysis last month, prices are expected to drop as we approach Independence Day, level off after the holiday, and remain steady through Labor Day.

As part of efforts to cut costs for Americans ahead of the holidays, President Joe Biden’s administration announced it will sell 1 million barrels — or 42 million gallons — of gasoline at an average of $2.34 per gallon.

“Gasoline prices have fallen nearly 20 cents in the last two months, but we know there is more to do,” Lael Brainard, director of the National Economic Council, said in a statement. “This action will help lower prices at the pump, building on other actions taken by President Biden, including historic releases from the Strategic Petroleum Reserve, record energy production, and the largest investment ever in clean energy.”

“While Republicans in Congress have not offered a single proposal to cut costs, President Biden is fighting every day for hardworking families like the ones he grew up with in Scranton,” she added.

The gasoline will be drawn from the Northeast Gasoline Supply Reserve, a U.S.-managed stockpile created in the wake of Superstorm Sandy in 2012, which damaged oil refineries in the region and impacted gas supplies in several states.

It is separate from the Strategic Petroleum Reserve, the world’s largest emergency reserve of crude oil. Biden sold 180 million barrels of that reserve in 2022 following Russia’s invasion of Ukraine, which sent global oil prices soaring. Biden has been criticized by Republicans for drawing down that stockpile, but the administration began replenishing it as crude prices plummeted.

“The Biden-Harris administration continues to take strategic action to lower prices for American consumers in every aspect of their lives – especially as the summer driving season heats up,” Energy Secretary Jennifer Granholm said in a separate statement. “By releasing this reserve before July 4, we are ensuring sufficient supply to the Northeast at a time when hardworking Americans need it most.”