California unlikely to get much help from Biden to lower gasoline prices. Here's why

The Biden administration boasted this week that it’s taking strong steps aimed at “helping to lower prices at the pump as Americans hit the road this summer.”

But its action is unlikely to help bring down California gasoline prices, which have consistently been the highest in the nation.

“It doesn’t mean anything for California,” said Patrick De Haan, head of petroleum analysis at GasBuddy, nor is it likely to mean much for consumers buying gasoline in all but six northeastern states.

A gallon of regular gasoline in California Wednesday cost $5.17. In the Northeast, which the administration hopes will benefit from its action, prices ranged from $3.77 a gallon in Pennsylvania to $3.50 in New Hampshire.

California’s average is by far the country’s highest, 37.5 cents a gallon more than runnerup Hawaii.

Pennsylvania and New Hampshire are swing states in the upcoming presidential election. Sanjay Varshney, professor of finance at Sacramento State, thought politics played a big part in the administration’s decision.

“The president is doing this to show some goodwill in those states. California is a guaranteed Democratic state,” said Sanjay Varshney, professor of finance at California State University, Sacramento.

The U.S. Energy Department plans to release 1 million barrels of oil of gasoline from the Northeast Gasoline Supply Reserve in time for the July 4 holiday. The Reserve is a federal emergency supply of gasoline stored in the New York harbor area and Maine that can be tapped when needed.

The decision comes because “The Biden-Harris Administration is laser focused on lowering prices at the pump for American families, especially as drivers hit the road for summer driving season,” said Energy Secretary Jennifer Granholm in a statement.

Asked about California’s prospects for relief, the Energy Department sent McClatchy this statement: “The barrels of gasoline to be sold are in the Northeast and will likely impact that area more directly given the regional nature of fuel distribution but, any additional gasoline supply brought into should have an impact on all drivers.”

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