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Biden Admin Contracts 1,000,000 Barrels From Emergency Gasoline Stockpile To ‘Lower Prices’ Ahead Of July 4th

The Biden administration is selling 1 million barrels of gasoline from emergency stockpiles in a deliberate effort to lower prices ahead of the upcoming holidays.

Department of Energy (DOE) Announced The government has awarded contracts to five energy companies to buy barrels from the Northeast Gasoline Supply Reserve (NGSR). part The NGSR release, part of the federal Strategic Petroleum Reserve (SPR) system, is intended to “help lower gasoline prices ahead of Independence Day,” according to the DOE.

“The Biden-Harris Administration continues to take strategic steps to lower prices for American consumers in all aspects of life, especially as the summer driving season gets into full swing,” Energy Secretary Jennifer Granholm said of the deal. “Releasing this stockpile before the Fourth of July ensures an adequate supply for the Northeast at a time when hardworking Americans need it most.” (Related: 'Out of ammo': Biden administration worried about return of $5 a gallon after Strategic Petroleum Reserve is depleted)

According to the DOE, after announcing its intention to authorize the NGSR release, a total of five companies submitted 19 proposals to the agency, with all five ultimately awarded contracts. The agency is selling the barrels for an average of $2.34 per gallon.

According to the DOE, the release is intended to ease price pressures in Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey and Pennsylvania. Among those states, New Hampshire currently has the lowest average gasoline price per gallon, at $3.38. according to To AAA Data.

The Biden administration has previously dipped into energy reserves to address short-term concerns about gas prices. In 2021 and 2022, as high gas prices threatened to create political problems for President Joe Biden and his Democratic colleagues ahead of the midterm elections, the administration authorized the release of about 180 million barrels of oil onto the market, millions of which were purchased by Chinese companies.

The SPR is currently at its lowest level in nearly 40 years. according to The Department of Energy has since tried to replenish the stockpile, but oil prices have at times exceeded the Department of Energy's target price for replenishment purchases, according to data from the U.S. Energy Information Administration.

The DOE did not immediately respond to a request for comment.

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