On Tuesday, the Biden administration announced the release of 1 million barrels of gasoline from a reserve in the Northeast, originally established after Superstorm Sandy. This initiative aims to reduce summer pump prices. The gasoline, stored in New Jersey and Maine, will be sold in increments of 100,000 barrels through a competitive bidding process. The Energy Department highlighted the goal of ensuring ample supply for local retailers before the July 4 holiday, promoting competitive pricing for consumers.

This decision aligns with a Congressional mandate to sell off the decade-old Northeast reserve, as stipulated in a March spending deal aimed at avoiding a government shutdown. The Energy Department emphasized that the timing of the 1 million barrel sale, equating to approximately 42 million gallons, is intended to ease costs for American families during the upcoming summer driving season.

Gasoline prices currently average $3.60 per gallon nationwide, marking a 6-cent increase from a year ago, according to AAA. Utilizing gasoline reserves is one of the limited actions a president can independently pursue to address inflation, a concern particularly heightened during an election year for the governing party.

Energy Secretary Jennifer Granholm emphasized the Biden-Harris administration’s commitment to easing pump prices for American families, especially as summer travel season begins. “By strategically tapping into this reserve between Memorial Day and July 4th, we’re ensuring a steady supply for the tri-state and Northeast regions when it’s most needed by hardworking Americans,” Granholm stated in a release.

White House Press Secretary Karine Jean-Pierre noted that releasing gas from the Northeast reserve builds upon President Joe Biden’s efforts to reduce gas and energy expenses. This includes significant releases from the Strategic Petroleum Reserve and substantial investments in clean energy, marking a pivotal approach towards addressing energy costs.

In 2022, President Biden drew criticism for significantly depleting the Strategic Petroleum Reserve following Russia’s invasion of Ukraine, reducing it to its lowest level since the 1980s. This move, made during an election year, aimed to stabilize rising gasoline prices in the aftermath of the European conflict. Republicans accused Biden of politicizing a reserve intended for national emergencies.

Since then, the Biden administration has started replenishing the oil reserve, which held over 367 million barrels of crude oil as of last week. Although lower than pre-war levels, this makes it the world’s largest emergency crude oil supply.

Regarding the Northeast reserve, the Energy Department specified that the 42-million-gallon sale must be transferred or delivered by June 30. Established by former President Barack Obama, the reserve has faced criticism from Congressional Republicans who argue that such reserves should be authorized by Congress. According to a 2022 Government Accountability Office report, the gasoline reserve, which has never been tapped, would offer limited relief during a severe shortage. Maintaining the reserve costs approximately $19 million annually.

According to GasBuddy analyst Patrick De Haan, the sale of the Northeast reserve is unlikely to significantly impact national gasoline prices, though it could exert slight downward pressure in the Northeast region. De Haan pointed out that the million-barrel reserve equates to just 2.7 hours of total U.S. gasoline consumption, emphasizing its limited scale.

In an interview with the Associated Press, De Haan expressed skepticism about the rationale behind maintaining the Northeast reserve, describing it as small and requiring frequent rotation due to gasoline’s shelf life. He noted that no other nation maintains an emergency stockpile of gasoline comparable to the U.S.

De Haan contrasted the gasoline reserve with the Strategic Petroleum Reserve, which holds much larger quantities of oil crucial for emergencies, highlighting its strategic importance in national energy security planning.