The U.S. Department of Energy’s (DOE) Office of Petroleum Reserves announced today a solicitation for the sale and liquidation of 1 million barrels (42 million gallons) of gasoline from the Northeast Gasoline Supply Reserve (NGSR). This measure aims to impact gasoline prices positively as Americans begin their summer travel.
“The Biden-Harris Administration is laser focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,” stated U.S. Secretary of Energy Jennifer M. Granholm. “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.”
Entities awarded through this sale, likely retailers and terminals, will receive or have fuel delivered by June 30, 2024, ahead of the July 4 holiday. The DOE plans to sell close to 1 million barrels from NGSR storage sites in Port Reading, NJ (900,000 barrels), and South Portland, ME (98,824 barrels).
The gasoline volumes will be allocated in quantities of 100,000 barrels to ensure a competitive bidding process accessible to both fuel retailers and terminal holders. This approach aims to distribute fuel locally before July 4 at competitive prices, thereby reducing costs for American consumers.
Bids must be submitted by May 28, 2024, at 11:00 a.m. Central Time. Revenues generated from this sale will be deposited into the Treasury.
This government-controlled stock release will inject nearly 1 million barrels (42 million gallons) of gasoline blendstock into the commercial market for discretionary use. Contracts from this sale will adhere to price adjustments as outlined in Supplements and Amendments to the Standard Sales Provisions (SSP).
The Notice of Sale details terms and conditions along with specific instructions for offer preparation and submission.
For further information on NGSR activities, visit the NGSR website.
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