U.S. Department of Energy to Sell 1 Million Barrels in Northeast Gasoline Supply Reserve

By Anthony Harrup

The U.S. Department of Energy said Tuesday it will sell 1 million barrels of gasoline from the Northeast Gasoline Supply Reserve, which is due to be closed in line with a law passed in March.

The department said the planned sale, equivalent to around 42 million gallons, is strategically timed to maximize impact on gasoline prices as the country gears up for the summer driving season.

"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," Energy Secretary Jennifer M. Granholm was quoted as saying in the release.

The DOE said it will sell 900,000 barrels from the storage site in Port Reading, N.J., and 98,824 barrels from the site in South Portland, Maine, in accordance with the Consolidated Appropriations Act. The act passed in March required the administration to sell the gasoline this year and close the reserve once the sale is completed.

Fuel from the planned sales, which is expected to go to retailers and terminals, will be delivered no later than June 30. Bids are due by May 28 and allocations will be made in quantities of 100,000 barrels.

Write to Anthony Harrup at [e-mail]

(END) Dow Jones Newswires

05-21-24 1342ET