The administration of U.S. President Joe Biden says it will release one million barrels of gasoline from the strategic petroleum reserve to reduce prices at the pump ahead of summer.
Specifically, the Biden administration wants to lower prices at the gas pumps before the July 4th holiday weekend in America.
Gasoline prices have fluctuated recently but remain elevated due to OPEC cutting production and concerns that the Israel-Hamas conflict could spark a wider war in the Middle East.
The Biden administration said it is tapping the strategic petroleum reserve in Texas and Louisiana to ensure that “gas prices remain affordable.”
Prices at the pump in the U.S. averaged $3.59 U.S. per gallon nationwide on May 21, about $0.04 U.S. higher than a year ago.
Retailers and terminals will receive the gasoline released from the strategic petroleum reserve no later than June 30, according to the U.S. 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.
The U.S. strategic petroleum reserve is currently at its lowest level in decades after the Biden administration previously released 180 million barrels in 2022 as energy prices rose after Russia invaded Ukraine.
