Biden Releasing Nearly 1M Barrels Of NJ Gas To Lower Pump Prices

NEW JERSEY — The Biden administration plans to sell one million barrels of gasoline from two reserves — including one in New Jersey — in order to lower gas prices for American motorists ahead of the summer, according to the U.S. Department of Energy.

New Jersey’s own Port Reading reserve will be supplying 900,000 barrels of fuel, with Maine’s South Portland reserve providing the additional 98,824 barrels. The gasoline sale is intended to create a bidding process that ensures fuel will be sold at competitive prices at local retailers ahead of the July 4 weekend, agency officials said.

“The Biden-Harris Administration is laser focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,” U.S. Secretary of Energy Jennifer M. Granholm said in a statement. “By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state and northeast at a time hardworking Americans need it the most.”

Bids for the sale are due by 11 a.m. Central Time on May 28. All revenues from the sale will be deposited to the U.S. Treasury. The fuel transferred or delivered on or before June 30, ensuring U.S. drivers have access to competitive prices at the pump.

U.S. gas prices averaged about $3.598 per gallon Tuesday, up $3.540 from a year ago, according to figures provided by AAA. In New Jersey, gas prices averaged $3.517 per gallon Tuesday, up from the $3.410 per gallon average a year ago.

Patrick De Haan, an analyst for GasBuddy, told the Associated Press the gas sale would have little impact on fuel prices across the U.S., although there "may be a slight downward pressure on prices" in the Northeast.

The million-barrel reserve (equal to about 42 million gallons) is equal to about 2.7 hours of total U.S. gasoline consumption, he told the outlet.