According to sources, the Biden Administration is planning to take advantage of the country's emergency oil reserves in order to cut gas prices ahead of the mid-term elections.
The price of gas dropped for seven days in a row.
Following the sale of 180 million barrels in March, the Biden Administration is expected to announce 14 million barrels of oil for sale.
It comes as the national average price for a gallon of gas dips from $3.92 to $3.87 per gallon over the past week, more than a dollar short of its all-time high of $5.02 on June 14, according toAAA.
There are five states where a gallon of gas costs more than $5.
According to data from the Energy Information Administration, national gas demand fell from 9.47 million barrels per day last week to 8.28 million barrels per day on Monday.
Georgia has the lowest prices in the country, at $3.25 per gallon, followed by Texas, Mississippi, and Arkansas.
The Department of Energy plans to buy oil from U.S. producers to replenish the country's emergency reserves, according to sources. In the week ending October 7, the reserves fell by 7.7 million barrels. A third of the 180 million barrel sale was going to be bought back by the DOE.
Motorists in California and Great Lakes states have seen a decline in gas prices as key state refineries that convert oil to gas come back online after being temporarily shut down. Over the past 14 days, prices in California have fallen by almost 50 cents, from $6.42 to $6.03. They set an all-time record in Los Angeles County. Patrick De Haan said in a statement this week that he expects a sharper drop on the West Coast.
The rise in gas prices has been a factor in congressional races. The idea of gas prices going back to $4 a gallon is something the Biden Administration wants to avoid, one source told the news agency. In the last few months, Biden has made several attempts to bring down gas and energy prices. His administration ruled out banning U.S. natural gas exports. Analysts blame the rise in gas prices over the past month on tight supplies following the shutdown of oil refineries in California and Great Lakes states as well as the decision last month by OPEC+ oil- producing countries to slash production by 2 million barrels per day
Here is why gas prices in Los Angeles are so high and why they could fall soon.
These States are where the cost of gas is the most expensive.
Gas prices are going up for the second week in a row.
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