Biden Drains Entire Northeast Gasoline Reserve In Bid To Lower Gas Prices As He Trails Trump By Double Digits – ZeroHedge 5/22/24


Back in March, when reading the mammoth, 1050-page bill that was meant to avert government shutdown, but was yet another pork filled free-for-all bonanza authorizing $1.7 trillion in in discretionary spending, we stumbled upon something that was truly shocking: after Biden singlehandedly drained half of the US strategic petroleum reserve to avoid obliteration for Democrats in the 2022 midterm elections, Congress has snuck in a provision that would sell off and shutter the Northeast Gasoline Supply Reserve, a move that while perhaps keeps gas prices lower for a day or two, would also leave the entire continental northeast defenseless to any true environmental catastrophe or shock. We were so dismayed by the inclusion of this particular text, we wondered if it hadn’t been put there solely for the benefit of America’s enemies…

The entire US 1 million barrel Northeast Gasoline Supply Reserve will be required to be sold and closed in fiscal 2024, according to bill text of government funding legislation unveiled Sunday

Did China write this bill?

— zerohedge (@zerohedge) March 3, 2024

… because surely nobody in their right mind, not even the illegitimate senile occupant of the White House, would ever pursue such short-term gains at the expense of potentially disastrous long-term consequences to the entire nation.

We were wrong: earlier today, just two months after the bill was signed by Biden into law, the panicking administration announced that it would sell the nearly 1 million barrels of gasoline in the US managed stockpile in northeastern states, the Department of Energy said, effectively closing the reserve.

The department created the Northeast Gasoline Supply Reserve (NGSR) in 2014 after Superstorm Sandy left motorists scrambling for fuel. But, according to some megabrains hoping to justify the dumping of gas so its price drops for a few weeks ahead of the summer and avoid even more anger aimed at the president, storing refined fuel is costlier than storing crude oil, so closing the reserve was included in U.S funding legislation signed by President Joe Biden in March.

Bids to buy the gasoline located at the two NGSR storage sites in Port Reading, NJ (900,000 bbl) and South Portland, ME (98,824 bbl), are due on May 28 and the Treasury Department’s general funds gets proceeds from the sale. Incidentally, the proceeds from the reserve liquidation – which will amount to roughly $125 million gross (and far less net) – is roughly how much the government spends every 15 minutes!

So is it better to have a gasoline reserve for unexpected events, or to fund a quarter hour of US government’s spending? Don’t answer that. Of course, the answer is neither – the whole point of selling the gasoline is to depress prices at the pump if only for a few days to help Americans forget about the great inflationary nightmare they have been in for the past 3 years.

The volumes will be allocated in quantities of 100,000 barrels with each barrel containing 42 gallons, the department said and said it would require that fuel is transferred or delivered no later than June 30. That will ensure the gasoline can flow into local retailers ahead of the Fourth of July holiday and that it will be sold at competitive prices. Translation: Biden just drained the Northeast strategic gasoline reserve to push gas lower by a few cents on July 4.

For context, gas prices at the pump this Memorial Day will be the second most expensive in a decade – dramatically above the ten-year average of $2.91……

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