The U.S. Department of Energy’s (DOE) Office of Petroleum Reserves has announced the awarding of contracts for the sale and liquidation of 1 million barrels (42 million gallons) of gasoline from the Northeast Gasoline Supply Reserve (NGSR). This action follows a Request for Proposal (RFP) announced on May 21, 2024. The gasoline is being sold at an average price of $2.34 per gallon to help reduce gas prices ahead of the Fourth of July holiday.
“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,” said U.S. Secretary of Energy Jennifer M. Granholm. “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.”
Five companies responded to the RFP, submitting 19 proposals, and contracts were awarded to all five companies:
- BP: 500,000 barrels
- George E. Warren, LLC: 100,000 barrels
- Vitol: 200,000 barrels
- Freepoint Commodities: 100,000 barrels
- Irving Oil: 98,824 barrels
The gasoline will be released from the NGSR to the winning bidders no later than June 30, 2024, and will reach the market shortly thereafter.
The DOE timed and structured this sale in accordance with the 2024 Consolidated Appropriations Act to maximize its impact on gasoline prices during peak summer travel season. This action aligns with ongoing efforts by the Biden-Harris administration to ensure an affordable and consistent energy supply while mitigating spikes in gas prices.
This release aims to ensure that gasoline supply reaches local retailers before the Fourth of July holiday, particularly affecting Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, and Pennsylvania.
For more information on the NGSR please visit the NGSR website.
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