US Energy Department declares sale of 1M barrels of gasoline before summer driving season
Date
5/22/2024 4:11:38 AM
(MENAFN) The US energy Department revealed on Tuesday a solicitation for the sale and liquidation of 1 million barrels, equivalent to 42 million gallons, of gasoline from the Northeast Gasoline Supply Reserve.
In a statement, the department noted that the solicitation has been strategically timed and structured to optimize its impact on gasoline prices, aiming to reduce costs at the pump ahead of the upcoming summer driving season.
"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,” Energy Secretary Jennifer Granholm stated in the declaration. "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.”
The Energy Department specified that retailers and terminals must have the fuel transferred or delivered by no later than June 30.
The volumes will be allocated in increments of 100,000 barrels to facilitate a competitive bidding process, allowing fuel retailers and terminal holders to participate. This approach ensures that gasoline can be readily available to local retailers before the July 4 holiday and can be sold at competitive prices, ultimately contributing to cost reductions for American families and consumers.
"Bids for the solicitation are due no later than 11:00 AM Central Time on May 28, 2024. Revenues from the sale will be deposited to the Treasury," the declaration noted.
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