DOE releases 1 million barrels from Northeast Reserve in attempt to bring down gas prices

One million barrels of gasoline have been released from the Northeast Gasoline Supply Reserve in an effort to lower gas prices, the Department of Energy announced Tuesday.

According to the DOE, the barrels will be sold at an average price of $2.34 per gallon — days before the July 4 holiday, when more than 60 million people are expected to hit the roads this year . The move is unlikely to have a significant impact on gas prices , however, as the amount being sold only amounts to a fraction of gasoline used in a single day.

The United States consumed an average of nearly 9 million barrels of gasoline per day in 2023, according to the Energy Information Administration. That means the barrels that are being released would amount to approximately three hours' worth of additional fuel for the country.

“The Biden-Harris Administration continues to take strategic action to lower prices for American consumers in every aspect of their lives — especially as summer driving season ramps up,” Energy Secretary Jennifer Granholm said in a written statement. “By releasing this reserve ahead of July 4th, we are ensuring sufficient supply flows to the Northeast at a time hardworking Americans need it the most.”

The sales comes after a solicitation request was announced back in May . The contracts will be awarded to energy companies BP , George E. Warren, Vitol, Freepoint Commodities, and Irving Oil. The contracts will be sold in increments of 100,000 barrels, or close to that amount.

The sale of the stocks in the reserve was required by Congress in an appropriations bill passed in March, and will aid in the closure of the reserve. Gasoline supply is expected to flow to Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, and Pennsylvania.

Following Russia’s invasion of Ukraine in 2022, the White House authorized a sale of more than 100 million barrels in an effort to lower gas prices after a temporary spike. Since then, the Energy Department has slowly been replenishing the reserve.

However, Republicans have warned the Biden administration against tapping into the reserve to bring down gas prices ahead of the election. In a letter sent out in May, Rep. Cathy McMorris Rodgers (R-WA) and Sen. John Barrasso (R-WY) accused the Biden administration of abusing the Strategic Petroleum Reserve for “political purposes,” and blamed the White House’s energy policies for high energy prices.

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The letter follows Republicans continuing to chastise the Biden administration’s moves to release barrels from the reserve, bringing it to its lowest level since the 1980s. The Biden administration has since worked to refill the reserve, so long as prices remain below $79 per barrel. However, back in April, the Biden administration abruptly canceled a plan to purchase up to 3 million barrels to refill the SPR by the end of the year, citing increasing oil prices.

As the U.S. heads into a busy driving summer, fuel costs are only expected to rise as demand increases. Over the last month, crude prices for West Texas Intermediate have risen by nearly $10 per barrel. But according to AAA, national average gas prices have remained relatively stable, with last month’s average standing at $3.53 per gallon and today’s current average at $3.50.