By Ovunc Kutlu
ISTANBUL (AA) - The US Energy Department announced Tuesday a solicitation for the sale and liquidation of 1 million barrels (42 million gallons) of gasoline in the Northeast Gasoline Supply Reserve.
The solicitation is strategically timed and structured to maximize its effect on gasoline prices, helping to lower the cost at the pump before the summer driving season begins, it said in a statement.
"The Biden-Harris Administration is laser focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,” Energy Secretary Jennifer Granholm said in the statement. "By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state and northeast at a time hardworking Americans need it the most.”
Retailers and terminals will have the fuel transferred or delivered no later than June 30, according to the Energy Department.
The volumes will be allocated in quantities of 100,000 barrels, and that will ensure a competitive bidding process that fuel retailers and terminal holders can participate in ensuring that gasoline can flow into local retailers ahead of the July 4 holiday, and that it will be sold at competitive prices, helping lower costs for American families and consumers, it added.
"Bids for the solicitation are due no later than 11:00 a.m. Central Time on May 28, 2024. Revenues from the sale will be deposited to the Treasury," said the statement.