Topline
At least seven states across the Southeast U.S. are experiencing gas shortages Tuesday, and the national average gas price creeped toward $3 a gallon, as the Colonial Pipeline Company works to restore its fuel pipeline system, but some experts warn panic buying gasoline could be exacerbating the problem and the fuel supply should remain intact through this week.
Blandon, PA - April 27: The price for gas at the Redners Quick Shoppe gas station on 222 at the ... [+]
Key Facts
States including Georgia, North Carolina, Virginia, and Florida were experiencing gas shortages Tuesday, days after Colonial Pipeline—which is responsible for transporting 45% of the East Coast’s gasoline—experienced a cyber attack that forced it offline Friday.
In Tallahassee, Fla., motorists reported 30 minute waits to get gas, and in North Carolina, one woman told the Charlotte Observer she was getting gas even though she didn’t need it because she’d “rather get it while there is some than none at all.”
As of Tuesday morning, 3.7% of gas stations in Georgia, 5.4% of stations in North Carolina and 7.5% of gas stations in Virginia didn’t have fuel, according to GasBuddy analyst Patrick De Haan (GasBuddy is a gas station-finding app that tracks local fuel prices).
While most states are experiencing shortages from the pipeline outage, fuel shortages in Florida could stem from panic buying; the state has been mostly unaffected by Colonial’s outage, yet AAA spokesperson Mark Jenkins told the Tallahassee Democrat consumers are “actually creating the shortage of gasoline” because they are “seeing reports about the Colonial Pipeline outage and are rushing to the pump.”
North Carolina Gov. Roy Cooper (D) declared a state of emergency on Monday to suspend motor vehicle fuel regulations to allow more fuel to be transported throughout the state, Georgia Gov. Brian Kemp (R) suspended the state’s gas tax to counterweight the increase in gas prices for drivers and the Department of Transportation temporarily revoked rules to allow fuel truck drivers to increase their hours along the pipeline.
Colonial plans to restore the pipeline by the end of the week; the company has not responded to a request for comment from Forbes.
Key Background
Colonial transports 2.5 million barrels of gasoline a day along the East Coast, and the Southeastern United States has few alternative pipelines for their fuel. While a prolonged outage could have severe effects on the U.S. gas supply, Wells Fargo analyst Roger Read said Monday there will be “no significant or lasting impacts” on fuel prices or supply if the pipeline is running within a week of the shutdown. However, GasBuddy estimates gasoline demand increased 20% on Monday due to reports of the outage, and demand jumped 40% in four states most likely to be affected by Colonial—Georgia, South Carolina and Virginia—and one state less likely to be affected: Florida.
Big Number
7 years. That’s how long it’s been since U.S. average gas prices creeped as high as $3 a gallon in 2014.
Crucial Quote
“It is true that if the pipeline remains out of service into the early part of next week, roughly Tuesday or so, that some gas stations may run low on gasoline,” De Haan told the Atlanta Journal-Constitution. “Tank farms that take the gasoline from the pipeline are likely starting to see supply run low, so it is vital that motorists do not overwhelm the system by filling their tanks.”
Tangent
The FBI concluded Monday the cyber-hacking group “DarkSide” was responsible for the ransomware attack on Colonial. President Joe Biden said the U.S. would “prosecute” those responsible, and said there was no evidence that Russian officials were behind the attack, but Russia may “have some responsibility” because the ransomware may have originated in Russia.
What To Watch For
Biden will reportedly sign an executive order to create new cyber safety standards for government agencies and federal contractors that create software. According to The New York Times the executive order would “require federal agencies to take a ‘zero trust’ approach to software vendors” and mandate software vulnerabilities “be reported to the U.S. government.”
Further Reading
Don’t panic during latest gasoline crisis, experts say (Atlanta Journal-Constitution)
Fuel shortages crop up in Southeast, gas prices climb after pipeline hack (Washington Post)
