Biden to release 1 million barrels of gasoline to reduce prices at the pump ahead of July 4

The Biden administration will release 1 million barrels of gasoline from reserves held in the Northeast to reduce prices at the pump ahead of the Fourth of July holiday and summer driving season.

“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,” Energy Secretary Jennifer Granholm said in a statement Tuesday.

Gasoline futures have rallied 19% this year as oil prices have risen due to OPEC cutting production and fears the Israel-Hamas war could spark a broader Middle East conflict that disrupts supplies. Rising energy prices sparked speculation in April that the Biden administration might tap the strategic petroleum reserve ahead of the November presidential election.

White House National Economic Advisor Lael Brainard said last month that the administration would “make sure gas prices remain affordable.”

But gas prices have eased in recent weeks as oil has pulled back from April highs when traders bid up crude futures on fears that Israel and OPEC member Iran were on the brink of war.

Prices at the pump averaged $3.59 per gallon nationwide on Tuesday, about 4 cents higher than the year-ago average but lower than last month, according to the motorist association AAA.

Retailers and terminals will receive the gasoline no later than June 30, according to the Department of Energy. The supply will be released in quantities of 100,000 barrels to ensure a competitive bidding process that maximizes the impact on prices at the pump, according to the DOE.

The barrels will come from storage sites in Port Reading, New Jersey and South Portland, Maine. Bids for the barrels are due at 11:00 a.m. Central Time, with the proceeds from the sales deposited at the Treasury Department.