Biden’s gasoline sale likely won’t have a major impact on summer pump prices
A sign displays gas prices at a gas station on May 21, 2024 in Chicago, Illinois.
Scott Olson | Getty Images
The Biden administration’s move to sell 1 million barrels of gasoline from a reserve in the Northeast is unlikely to have a substantial effect on pump prices as summer driving season gets underway, according to market analysts.
The Department of Energy said Tuesday the sale would be timed to have a maximum impact on prices this summer with deliveries completed before the Fourth of July holiday.
But the barrels in the Northeast Gasoline Supply Reserve are equivalent to just 2.65 hours of total U.S. gasoline consumption and two or three days in the areas where the gas is stored, said Patrick de Haan, head of petroleum analysis at GasBuddy.
“It’s not going to be a huge needle mover,” de Haan said, though the sale could provide 5 cents to 10 cents of relief in the Northeast where the gasoline market is historically tight.
“This is not going to be huge party at the pump,” the analyst said.
The motorist association AAA agrees, with spokesman Andrew Gross saying the sale might “help stave off any regional pump price surges, but likely won’t move the national average that much.”
Gas prices trending lower
Oil prices surged last month as Israel and OPEC member Iran stood on the brink of war, raising concern at the White House that gasoline prices could jump heading into the summer.
But gas prices have been trending lower for weeks now as demand has softened and U.S. oil prices have pulled back 11% from April highs after a broader conflict in the Middle East was averted.
Prices at the pump are averaging about $3.61 per gallon nationwide heading into Memorial Day weekend, around five cents lower than the average last month, according to data from the motorist association AAA. However, current prices are still roughly five cents higher than the year-ago average.
When adjusting for inflation, pump prices are about 2% lower compared to last year, according to the Energy Information Administration.
RBOB
The gasoline sale announced by the Biden administration fulfills a mandate passed by Congress in March to close the Northeast Reserve this year.
De Haan said the reserve didn’t make financial sense to begin with. It was set up in in 2014 in the aftermath of Superstorm Sandy, which knocked out refineries and caused chaos at the pump.
But the reserve cost taxpayers $200 million just to maintain while the gasoline in the stockpile is only worth about $103 million right now, de Haan said.
“I don’t like the political victory lap,” he said of the Biden administration’s announcement. “It didn’t make sense to have this reserve. [Former President Donald] Trump tried to shut it down in 2020. Congress now approved it being shut down.”
De Haan said the summer driving season is already getting off to a “soft start,” with gasoline demand about 8% lower through Thursday compared to the year-ago period. Even in costly California, gasoline prices are down about 27 cents over the past four weeks, he said.
WTI v. Brent
“We know a lot of folks are saying they’re going to be traveling for Memorial Day,” de Haan said. “That would just imply to me that more people may be flying than driving this time around.”
AAA, however, is forecasting a record 38 million drivers will take to the road this weekend, a 4% increase compared to last year. This could move prices slightly higher, the group said.
But de Haan said gasoline prices will likely edge lower through the Fourth of July holiday as refiners increase output, which should keep downward pressure on pump prices.
For July, GasBuddy is forecasting prices in a range of $3.39 to $3.72 per gallon on average nationwide. De Haan expects prices to be in the lower half of that range and generally sit in the mid-$3 range.
“Since the pandemic, the summer driving season has not seen a surge in demand, which can push pump prices higher,” said Gross, the AAA spokesperson.
Hurricane season wildcard
The gasoline price outlook becomes more uncertain heading into Labor Day on Sept. 2. Hurricane season in the Atlantic is expected to be extremely active this year, according to forecasts from Colorado State University Tropical and Weather Climate Research.
The Colorado university report is forecasting 11 hurricanes this season, the highest number ever issued in its April outlook due to extremely warm sea surface temperatures and the likely development of La Niña conditions. There is a 42% chance that a hurricane makes landfall in the Gulf Coast, the hub of U.S. oil infrastructure, CSU found.
If a major hurricane knocks refiners offline, gasoline prices could rapidly spike 50 cents a gallon for a month or two before returning to normal, de Haan said.
“Anyone traveling or planning a late-season road trip needs to be watching the Gulf of Mexico and watching the Atlantic because we’ve seen profound impacts from hurricanes on refiners before and that’s a worry for the closing innings of summer,” he said.
Mammoth Solar, a 1.3 gigawatt (GW) solar farm in northern Indiana, is now powering into its biggest construction phase yet, cementing its place as one of the largest solar projects in the US.
The solar farm is set to increase Indiana’s solar capacity by more than 20% once it’s fully online. And with construction ramping up this month, developer Doral Renewables has given Bechtel Full Notice to Proceed on the design, engineering, and construction of three major phases of the project: Mammoth South, Mammoth Central I, and Mammoth Central II. Together, these phases will generate 900 MW of clean energy.
That’s enough electricity to power around 200,000 homes with clean energy, helping Indiana shift away from fossil fuels while boosting the local economy.
Construction is already underway, and over the next two years, Bechtel will install around 2 million solar panels, with about half of them made in the US. The company is also handling all engineering, procurement, and construction work, using its digital project management tools and autonomous tech to keep everything on track.
At the peak of the buildout, Mammoth Solar is expected to create over 1,200 jobs, with at least 15% of those set aside for apprenticeships.
Bechtel says its success will hinge on strong collaboration with local trades and vendors. The company is working closely with craft professionals and is committed to being a reliable community partner throughout construction.
Once the solar farm is complete in 2027, Doral Renewables plans to roll out agrivoltaics across the site. That means livestock grazing and crop cultivation will happen right alongside energy production, giving farmers in the area a way to keep working their land while supporting clean energy development.
Read more: Solar adds more new capacity to the US grid in 2024 than any energy source in 20 years
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BYD is about to launch an even smaller EV, but this one’s a little different. It’s BYD’s first kei car. You know, those tiny vehicles that dominate Japan’s city streets? BYD’s mini EV was just spotted out in public, giving us our first real look at the upcoming kei car.
BYD’s first mini EV was spotted in public
Last week, rumors surfaced that BYD was developing its first kei car, which would compete with top-selling models from Nissan, Honda, Mitsubishi, and other Japanese brands.
Kei cars, or “K-Car,” as they are sometimes called, are a class of ultra-compact vehicles that cannot be longer than 3.4 meters (134″). To put that into perspective, BYD’s smallest EV currently, the Seagull (called the Dolphin Mini overseas), is 3,780 mm (148.8″) long.
The mini vehicles are ideal in Japan because they are so small, making it easy to get around tight city streets. They are also more affordable and efficient than larger vehicles.
BYD’s mini EV was spotted for the first time during a road test this week by IT Home (via CarNewsChina), revealing a familiar look. It has that boxy, compact look of a typical kei car with sliding side doors.
According to reports, BYD is developing a new platform for the model. It will reportedly include a 20 kWh battery, good for 180 km (112 miles) WLTC range. By using its in-house Blade LFP batteries, BYD is expected to have a cost advantage.
BYD’s upcoming mini EV is expected to start at around 2.5 million yen, or about $18,000. That’s about the same as the Nissan Sakura (2.59 million yen), Japan’s best-selling EV last year.
既出ですがBYDの日本向けEV軽自動車と言われているフロントとリアからのスパイショット。 pic.twitter.com/CcV5pihpWc
— 主夫まぬか (@syufumanuka) May 16, 2025
Last year, around 1.55 million kei cars were sold in Japan, accounting for roughly 40% of new vehicle sales. Honda’s N-Box was the top-selling kei car (EV or gas) for the third straight year.
As Nikkei reported, some are already calling BYD’s electric kei car “a huge threat.” A Suzuki dealer said, “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”
BYD already sells several electric cars in Japan, including the Atto 3 SUV, Dolphin, and Seal. Last month, the company launched the new Sealion 7 midsize electric SUV, starting at 4.95 million yen ($34,500).
Although Japan isn’t really an EV hot spot, with sales falling 33% in 2024 to just under 60,000 units, BYD sees an opportunity.
By making virtually every car component in-house, including batteries, BYD can offer EVs at such low prices while still making a profit. BYD’s cheapest and best-selling electric car, the Seagull, starts at under $10,000 (69,800 yuan) in China.
With new smart driving and charging tech rolling out, BYD’s electric cars are getting smarter and even more efficient.
Can BYD’s mini EV compete with Japanese brands? At the right price, it may have a chance. Check back soon for more on the upcoming kei car. We’ll keep you up to date with the latest.
Source: Sina, CarNewsChina
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Ford’s electric pickup truck is back at the top. The F-150 Lightning is once again the best-selling electric pickup in the US after overtaking the Tesla Cybertruck in the first quarter.
Ford’s F-150 Lightning is the best-selling electric pickup
After launching in 2023, Tesla’s Cybertruck quickly outpaced the Lightning to become America’s top-selling EV pickup last year.
Since Tesla doesn’t break down regional sales, registration data gives us our best estimate. The latest registration data from S&P Global Mobility (via Automotive News) shows that the F-150 Lightning retook the title in March and the first quarter of 2025.
Ford’s electric pickup notched 2,598 registrations in March, topping the Tesla Cybertruck with 2,170. In the first quarter, the F-150 Lightning remained ahead with 7,913 registrations, compared to the Cybertruck’s 7,126.
Although the Cybertruck was the fifth top-selling EV in the US last year, it didn’t even crack the top ten in March. It placed ninth through the first three months of 2025, behind the Volkswagen ID.4.
While Tesla and Ford remained the leaders in the electric pickup market, several new models are gaining momentum. According to the most recent numbers from Cox Automotive, GM sold 2,383 Chevy Silverado EVs and 1,249 GMC Sierra EV models in Q1. Meanwhile, Rivian sold 1,727 R1Ts during the quarter.
Earlier today, Electrek reported that new models, including the Honda Prologue and Chevy Blazer EV, helped drive EV registrations up 20% in the US in March.
Although the Lightning reclaimed the crown from Tesla, Ford’s electric pickup isn’t exactly flying off the lot. Ford reported Lightning sales fell 16% to just 1,740 units in April. Through April 2025, Ford has sold 8,927 electric trucks, down 9% from the 9,833 it handed over last year.
Electrek’s Take
To be fair, Tesla is still ahead by a wide margin in the US. The S&P numbers show Tesla had over 51,000 registrations in March, up 1% after two months of lower YOY growth.
GM’s Chevy surpassed Ford to become the second-best-selling EV brand with nearly 8,500 registrations, an increase of 274% from last year. Ford dropped to third with 7,361 registrations.
Although it’s just one quarter, it’s starting to show how Tesla CEO Elon Musk’s political antics are likely impacting sales. After the Cybertruck’s initial hype, it appears many buyers are opting for traditional pickups, like the F-150 Lighting.
Meanwhile, Ram is delaying its first electric pickup, the 1500 REV, again. Ram is pushing production back until summer 2027, saying it’s “extending the quality validation period.” The plug-in hybrid (PHEV) Ramcharger will also be delayed until the first quarter of 2026.
After pulling the Ramcharger ahead of the fully electric version last year, Stellantis blamed weak demand for EV pickups in the US.
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