WASHINGTON (TND) — As Memorial Day and the busy summer travel season approach, drivers are preparing for higher gas prices.
According to AAA, the national average gas price is about $3.61 per gallon. The Energy Information Administration (EIA) expects this average to sit around $3.70 from April through September, similar to the same period last year. This anticipated increase is due to higher demand and the Environmental Protection Agency's requirement for refineries to switch to their summer blend of fuel, which is more expensive to produce.
In response to the anticipated price increase, the Biden administration announced plans to release one million barrels of gasoline from the Northeast Gasoline Supply Reserve, created in 2014 after Hurricane Sandy disrupted the gas supply in the New York City area. This reserve has never been tapped until now. According to the Department of Energy, this move aims to lower gas prices and create a competitive bidding process, with gasoline reaching retailers and terminals by June 30, just ahead of the July Fourth holiday. However, it's important to note that this decision follows a congressional mandate to sell the reserve and close it, as part of a spending deal approved in March to avoid a government shutdown.
Critics argue that the impact of this release might be minimal. According to the EIA, the U.S. used approximately 8.94 million barrels of gasoline per day in 2023 and releasing one million barrels amounts to only about 2.7 hours of total consumption. Patrick De Haan, an analyst for GasBuddy, suggests that the national impact on gas prices may be slight. Additionally, the Government Accountability Office released a report in 2022 that stated the reserve would only provide limited relief during a supply shortage.
The move has also faced criticism from Republicans. Tapping into the oil reserves is one of the few actions the president can do by himself to try to control inflation, which has led Republicans to assert Biden is only using the reserve to lower gas prices for political gain as we approach election season. They argue that the reserve was intended for emergencies and that the Biden administration is depleting resources for temporary relief instead of encouraging domestic oil production.
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