The administration of US President Joe Biden has put its gasoline reserves of one million barrels for sale on the market, especially after Congress ordered it to liquidate the stock.

This comes after the announcement of the sale of gasoline supply reserves in the Northeast, equivalent to 42 million gallons, by the Department of Energy, which said that this timing was chosen to help reduce gasoline prices during the summer driving season.

Gasoline prices saw gasoline futures rise to their lowest level in the session at $2.4895 per gallon after the news circulated.

The reserve was approved in 2014, two years after Hurricane Sandy destroyed refineries and flooded gas stations, leaving some New York gas stations without fuel for up to 30 days.

It should be noted that the reserve held at commercial storage terminals in Maine and New Jersey has never been used.

Retail gasoline prices rose by about 15% during 2024, and experts indicated that costs are expected to continue to rise during the summer travel season.

Energy Secretary Jennifer Granholm said during a statement about the strategic launch of this reserve: “We are ensuring sufficient flows of supplies to the three states and the Northeast at a time when the citizens of America need it.”

Product reserves are about $13 per barrel on an annual basis for operations and formulation, compared to about 30 cents per barrel of crude oil stored in the Department of Energy’s Strategic Petroleum Reserve, according to the 2022 report.