U.S. Department of Energy to Release 1 Million Barrels of Gasoline from Reserves
The U.S. Department of Energy (DOE) has declared the sale of 1 million barrels (equivalent to 42 million gallons) of gasoline from the Northeast Gasoline Supply Reserve (NGSR), with the intention of easing gasoline prices as Americans prepare for the summer driving season and in anticipation of U.S. elections later this fall.
According to Oil Price, bids are due by 11:00 a.m. Central Time on May 28, 2024, with revenues from the sale directed to the U.S. Treasury. This initiative is part of a broader strategy to manage the country’s petroleum reserves effectively and ensure energy security. By introducing nearly 1 million barrels of gasoline into the commercial market, the DOE hopes to stabilize prices and provide relief to consumers.
The Department of Energy established in 2014 the Northeast Gasoline Supply Reserve (NGSR)—the first federal, regional, refined petroleum product reserve containing gasoline—following the 2012 Superstorm Sandy in the northeastern United States.
The NGSR holds one million barrels of gasoline, including 700,000 barrels located in the New York Harbor area, 200,000 barrels in the Boston area, and 100,000 barrels in South Portland, Maine.
