Biden Tapping Gas Reserves To Address Gas Prices
Peak Driving Season Begins This Weekend
Heading into Memorial Day weekend and the peak driving season, Massachusetts gas prices on average are higher than at this time last year and the Biden administration is tapping national reserves in an election-year bid to lower prices at the pump.
The average gas price in Massachusetts is $3.55 per gallon this week, according to AAA Massachusetts. That’s 12 cents per gallon higher than the $3.43 per gallon average at this time in 2023. Gas prices in 2022 soared well beyond the $4 per gallon mark.
On Tuesday, the U.S. Department of Energy announced plans to sell and liquidate 42 million gallons of gas in the Northeast Gasoline Supply Reserve with the expectation that retailers and terminals will have the fuel transferred or delivered by June 30. Reserve sites to be tapped include one in Portland, Maine.
The energy department said the solicitation was timed to help lower prices before more Americans embark on summer travel, and would ensure that retailers get gas supplies before the Fourth of July holiday and that it will be sold at competitive prices. Bids are due by May 28.
“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,” U.S. Energy Secretary Jennifer Granholm said in a 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.”
On Monday, AAA Northeast forecast the second-highest Memorial Day travel period on record will begin this weekend with pressure on gas prices easing because Americans have consumed 1.5 percent less gasoline year-to-date in 2024, compared to 2023, according to the Energy Information Administration.
The transition to cleaner vehicles that state government officials are trying to expedite as part of the effort to reduce greenhouse gas emissions is creating another challenge because the state relies on its 24 cents per gallon gas tax to generate money for transportation infrastructure.
