Biden sells 1 million barrels of gasoline to try to lower prices

The United States government announced on Tuesday (May 21, 2024) that it has placed 1 million barrels of gasoline (equivalent to 159 million liters) for sale in an attempt to lower the price of fuel. The products were stored in a strategic reserve in the northeast of the country.

Sales will run until July 4, where the local Independence Day holiday is celebrated, according to a statement from the US Department of Energy. Here is the full text (in English, PDF – 73 kB).

The measure could lead to a drop in gasoline prices because of the effect of supply and demand. The purchase cost should be reduced since the fuel is available in greater quantities on the market.

“By strategically releasing this reserve between Memorial Day and Independence Day, we are ensuring a sufficient flow of supplies […] at a time when hard-working Americans need it most”said US Secretary of Energy Jennifer M. Granholm.

According to the North American newspaper New York Timesmeanwhile, 1 million barrels of oil not enough to have a significant impact on the country’s economy, not even in the northeast.

With the sale of the barrels, the reserve that kept gasoline in stock will be closed. It was located in the New York Harbor region and Maine.

The attitude was also seen as contradictory to the Joe Biden government’s environmental preservation policy. The Democratic president frequently defends issues related to sustainability.