The Department of Energy’s (DOE) Office of Petroleum Reserves announced that contracts have been awarded for the sale and liquidation of 1 million barrels (42 million gallons) of gasoline in the Northeast Gasoline Supply Reserve (NGSR).
The contracts awarded represent a fully subscribed solicitation following the Request for Proposal (RFP) that was announced on May 21, 2024. The 1 million barrels are being sold at an average price of $2.34 per gallon and will help lower gas prices ahead of the Fourth of July holiday.
A total of 5 companies responded to the RFP, submitting 19 proposals, and contracts were awarded to all 5 companies. This sale is fully subscribed, and the contracts were awarded to the following companies:
- bp 500,000 barrels
- George E. Warren, LLC 100,000 barrels
- Vitol 200,000 barrels
- Freepoint Commodities 100,000 barrels
- Irving Oil 98,824 barrels
The gasoline awarded will be released from the NSGR to the winning bidders no later than June 30, 2024, and will hit the market soon after.
DOE strategically timed and structured the sale of this gasoline, undertaken in accordance with the 2024 Consolidated Appropriations Act, to maximize the impact of this release on gasoline prices, helping to lower prices at the pump as Americans hit the road this summer. Today’s action fits within the Biden-Harris administration’s ongoing efforts to ensure affordable and consistent supply of energy, releasing reserves to mitigate spikes in gas prices and supporting record energy production.
This sale ensures gasoline supply flows into local retailers ahead of the Fourth of July holiday, particularly impacting the states of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, and Pennsylvania.
