Over the next couple of weeks, the Biden administration plans to sell one million barrels of gas from the Northeast Gasoline Supply Reserve, an emergency stockpile established in 2014 after Superstorm Sandy. This reserve, unlike the larger strategic petroleum reserve, has never been tapped before and is costly to maintain. Legislation passed earlier this year mandates its closure, prompting the recent decision by the Energy Department.
While the move is not expected to have a significant impact on gas prices, as a million barrels represent only a fraction of national supply, it comes as welcome news amidst concerns of escalating prices. The national average currently stands at $3.61 per gallon, down from recent highs but slightly higher than a year ago. This stability contrasts with fears of $4 gas due to factors like OPEC supply constraints and geopolitical tensions.
Looking back, the current prices are notably lower than the $4.59 average seen in 2022, reflecting a positive trend since the pandemic's onset. Despite the increase from last year, the upcoming Memorial Day weekend is expected to see a surge in travel, with AAA forecasting 38.4 million people hitting the roads, marking the highest number since 2000.
