Biden Administration to Sell 1 Million Barrels of Gasoline to Ease Northeast Prices, Experts Skeptical of Nationwide Impact – Is the Northeast Gasoline Supply Reserve Worth It?

The Biden administration is selling gasoline from a reserve to lower prices in the Northeast but experts doubt it will help nationwide questioning the reserve’s usefulness and value.

Biden Administration to Sell 1 Million Barrels of Gasoline to Ease Northeast Prices Ahead of Summer, Analysts Skeptical of Nationwide Impact

The Biden administration is selling 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve to help lower costs for drivers before summer. The sale will be done in smaller portions to ensure a fair bidding process. Energy Secretary Jennifer Granholm says this will ensure enough supply for the Northeast when demand is high, according to the report of Money Wise.

However, this sale is unlikely to significantly lower gas prices nationwide. Analysts point out that the reserve only holds a small fraction of total U.S. gasoline consumption. This reserve was established in 2014 after Superstorm Sandy, but it’s been criticized for its high operational costs compared to storing crude oil.

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(photo: Reuters)

Gasoline Sale Aimed at Easing High Prices, Yet Critics Doubt Impact and Question Reserve’s Value

Overall, the sale aims to provide some relief to drivers facing high gas prices, but its impact may be limited. Critics question the effectiveness of the reserve, which was created to address energy shortages but has faced scrutiny for its costs and small size compared to other reserves.

Also, the Northeast Gasoline Supply Reserve holds less fuel than the Strategic Petroleum Reserve, which mainly stores crude oil. This raises questions about relying on refined oil reserves for long-term energy needs. Policymakers may need to reconsider the usefulness of such reserves in the energy sector.

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