Inflation Continues to Affect Americans
Despite a slight easing, inflation continues to cast a heavy shadow over the lives of millions of Americans who are grappling with high prices for housing, fuel, and food.
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As of April 2024, the average price for a gallon of fuel in California was $5.15, whereas in states such as Colorado and Mississippi, it was $3.07 and $3.08, respectively. The Biden Administration has devised a new plan to lower the price of gas in the nation.
Biden Administration Set to Release 1 Million Barrels
On May 21, the Biden administration had some good news for Americans: they announced their plans to withdraw one million barrels of oil from the Northeast reserve, according to AP News.
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The withdrawal of such an extensive amount of barrels from the gas reserve, which was established after Superstorm Sandy, should help lower the price at pumps for millions of Americans this summer.
Gas Barrels Will Be Released in Increments
The barrels of gas, which are currently stored at sites in Maine and New Jersey, will be released in increments of around 100,000 at a time. This aims to create a competitive bidding process that should allow gasoline to reach retailers before the July 4 holidays.
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According to the Energy Department, it will also ensure that the distributed gasoline will be sold at competitive prices.
Energy Department Follows Congressional Mandate
The decision to sell off the excessive number of barrels is intended to “lower costs for American families and consumers,″ said the Energy Department.
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However, it comes following a congressional motion that ordered the department to sell off the decade-old Northeast Reserve before closing it down. This was written into a spending deal approved by Congress back in March.
Current Average Price of Gasoline
Currently, the national average for a gallon of gasoline is around $3.60. However, the Energy Department, alongside the Biden administration, hopes the additional 42 million gallons sold from the reserve will lower the national average this summer.
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Using up gasoline reserves is one of the few ways a US president can try to control inflation.
Biden Administration Focused on Lowering Prices
According to a statement from Energy Secretary Jennifer Granholm, the Biden administration is doing everything in its power to ensure American families will pay less for their fuel this summer, ultimately lowering their overall monthly expenses.
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“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,” said Granholm.
Hard-Working Amercians
Granholm continued by suggesting that the release of gasoline from the Northeast Reserve comes at a time when hard-working Americans need it the most.
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“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,” said Granholm.
White House Press Secretary Releases Statement
White House Press Secretary Karine Jean-Pierre released a statement about the Biden Administration’s plan to release one million barrels of gasoline from the reserve.
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According to Jean-Pierre, the decision to sell from the reserves aims to “lower gas and energy costs, including historic releases from the Strategic Petroleum Reserve and the largest-ever investment in clean energy.″
Biden Previously Drained the Nation’s Reserves
Following Russia’s invasion of Ukraine in 2022, Biden was forced to drain a significant portion of the nation’s Strategic Petroleum Reserve, and it dropped to its lowest level in four decades.
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The Biden administration has since tried to refill the reserves, which, according to AP News, currently have around 367 million barrels of crude oil.
Republicans Continue to Criticize the Northeast Reserve
Republican voters and politicians have continuously criticized the Northeast Reserve since former US President Barack Obama founded it.
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According to their opinion, the stockpile should have been created under the guidance of Congress. A report released several years ago suggests the reserve costs around $19 million a year simply to maintain it.
Analyst Shares Thoughts on Sale of Northeast Reserve
According to Patrick De Hann, who currently works as an analyst for GasBuddy, the sale of the Northeast Reserve might have little to no effect on gas prices across the nation.
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“As an analyst, this reserve never really made a whole lot of sense to have,’’ De Haan said in an Associated Press interview. The reserve is small and must be rotated regularly as “gasoline has a shelf life,’’ De Haan said. “That’s why there’s really no nation that has an emergency stockpile of gasoline’’ other than the U.S.