ALBANY, N.Y. (NEWS10)- To offset the price of gas 1 million barrels of oil a day from the nation’s reserves will be released for six months, as reported by NewsNation. The move was announced by President Joe Biden on Thursday, March 31.
New Yorkers, who pay the ninth highest gas taxes in the nation could benefit from a break at the pump which is what the release of these barrels was intended for. How much the price will be affected is still up in the air.
“While it is likely to have a downward effect on the price of gasoline, there are many factors that could derail or change the situation,” said Head of Petroleum Analysis at GasBuddy, Patrick De Haan. “On the surface, without any changes in the Russia situation, it could push prices down 10-25 cents a gallon, but again, there is a high likelihood that number could change based on the changing situation and factors that affect prices.”
AAA said, like the rest of the U.S., the price of gas in N.Y. will likely go down but how much is unknown. If the price does go down, there’s also no way to tell for how long prices will hold.
“While the pump price impact will be determined by the exact amount of oil purchased in the market and the duration of the daily releases, some reports have noted that releases could last for up to 180 days. If the releases occurred for that long, the market would likely see downward pressure on oil prices. However, the global oil market remains highly volatile, so additional news that threatens supply could put upward pressure on oil prices,” AAA said in its latest analysis Thursday.
The average price for a gallon of gas was $4.27 in the Albany area on Friday. If the price of gas went down by 10 cents, based on Friday’s average, people would save $1.00 on 10 gallons. If the price of gas went down by 25 cents, people would save $2.50 on 10 gallons.
The global price of oil did go down when President Biden announced the reserves would be released. This will help with the price of gas because the price of oil is 61% of what people pay at the pump, AAA said.