US Considers Selling Northeast Gasoline Reserve in 2024
Upcoming Sale of Gasoline Reserve
The United States is contemplating selling its 1 million barrel Northeast gasoline reserve in fiscal year 2024, as per a draft funding bill released recently. The reserve was established in 2014 to address fuel shortages in the Northeast following Superstorm Sandy. It spans New York Harbor, New York, Boston, Massachusetts, and Portland, Maine.
Proceeds from the Sale
The sale of refined products from the reserve will contribute to the Treasury’s general fund, according to the bill’s provisions. Once the Northeast Gasoline Supply Reserve is depleted, the energy secretary will require explicit funding requests for any new regional petroleum product reserves.
Market Insights
With gasoline prices around $2.29 per gallon in New York Harbor, the potential sale is expected to have significant financial implications. One barrel of gasoline typically contains 42 gallons of fuel, highlighting the substantial volume involved in the transaction.
Legislative Impact
In addition to the reserve sale, the bill includes provisions to prevent Chinese entities from purchasing from the U.S. Strategic Petroleum Reserve. The bill is set for voting in the U.S. House of Representatives before moving to the Senate for further review.
