U.S. Considers Selling Northeast Gasoline Reserve in 2024 as Part of Draft Bill

(Reuters) — The United States may sell its 1 million barrel Northeast gasoline reserve in fiscal year 2024, according to the draft text of a funding bill released on Sunday.

The reserve, first established in 2014 after Superstorm Sandy left motorists in the northeastern United States without fuel, is located in New York Harbor, New York, Boston, Massachusetts and Portland, Maine.

The proceeds from the sale of the refined products in the reserve would be deposited into the Treasury's general fund, according to the text of the bill, which is likely to pass this week.

Once the Northeast Gasoline Supply Reserve is closed, the secretary of energy cannot establish any new regional petroleum product reserve unless funding is explicitly requested in advance of an annual budget submitted by the president and approved by Congress, the bill stipulates.

One barrel of gasoline contains approximately 42 gallons. Gasoline in New York Harbor is currently selling for about $2.29 per gallon.

The provision was included in a bill that also aims to prohibit Chinese entities from buying crude oil from the U.S. Strategic Petroleum Reserve.

The U.S. House of Representatives will have to vote on the bill first before the Senate can take up the package before Friday, Senate Majority Leader Chuck Schumer said.

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