US DOE Sells 1 Million Barrels Gasoline from Gasoline Reserve

The U.S. Department of Energy’s (DOE) Office of Petroleum Reserves has announced the awarding of contracts for the sale and liquidation of 1 million barrels (42 million gallons) of gasoline from the Northeast Gasoline Supply Reserve (NGSR). These contracts, which fully subscribed to the solicitation following the Request for Proposal (RFP) announced on May 21, 2024, involve the sale of the gasoline at an average price of $2.34 per gallon. This strategic move aims to lower gas prices ahead of the Fourth of July holiday.

A total of five companies responded to the RFP, submitting 19 proposals, and contracts were awarded to all five. The sale is fully subscribed, with the contracts allocated as follows: BP (500,000 barrels), George E. Warren, LLC (100,000 barrels), Vitol (200,000 barrels), Freepoint Commodities (100,000 barrels), and Irving Oil (98,824 barrels). In accordance with the established timeline, gasoline will be distributed to successful awardees by June 30th, 2024, ensuring its swift introduction into the market.

The Department of Energy (DOE) strategically timed and structured this gasoline sale, carried out under the 2024 Consolidated Appropriations Act, to maximize its impact on gasoline prices, aiming to reduce costs at the pump as Americans travel this summer. This initiative aligns with the Biden-Harris administration's ongoing efforts to maintain an affordable and stable energy supply. By releasing reserves, the administration seeks to mitigate gas price spikes and support record levels of energy production.

U.S. Secretary of Energy Jennifer M. Granholm highlighted the Biden-Harris Administration's ongoing efforts to alleviate financial burdens on American consumers, particularly as summer travel intensifies. Emphasizing the release of reserves before July 4th, Granholm aimed to ensure sufficient fuel supply in the Northeast, where demand peaks. This strategic action is intended to support hardworking Americans by stabilizing prices and enhancing accessibility during a crucial period when energy needs are heightened, reflecting the administration's commitment to addressing economic challenges through proactive energy policies.

This sale ensures that gasoline supply reaches local retailers in time for the Fourth of July holiday, with a significant focus on the states of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, and Pennsylvania. By strategically releasing gasoline reserves, the Department of Energy aims to stabilize and lower fuel prices in these regions, anticipating increased travel and demand during the holiday period. This proactive measure is designed to enhance the availability and affordability of gasoline for consumers, supporting a smoother and more economical travel experience across these northeastern states during the busy holiday season.