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Colonial Pipeline Shutdown Leads to Panic Buying
A number of East Coast gasoline stations are coming up empty, saying that panic buying is causing fuel shortages. The recent cyberattack on the Colonial pipeline, a 5,500-mile system that carries fuel to the East Coast, is causing the frenzy.
RELATED: US Faces Summer Gas Shortage Due to Lack of Truckers
Gas Outages, Higher Prices Due to Panic Buying
As of Tuesday morning, six states along the hacked pipeline operated by Colonial Pipeline Co. are experiencing shortages in fuel products. Amounts vary per state, ranging from less than a percent in Alabama to 7.6% in Virginia.
This is according to GasBuddy analyst Patrick De Haan. However, the rate keeps rising as the pipeline remains shut down. The critical Colonial pipeline runs from Texas to New Jersey and delivers nearly half of all refined fuel to the East Coast.
The shortages are pushing prices even higher on the already tight reserves. any motorists are reportedly panic buying and stocking up on fuel.
Last week, fuel demand from vehicle owners jumped by 30% on the East Coast, according to GasBuddy’s tracking. Meanwhile, fuel demand also rose 16% in the Midwest and 13% in the Gulf Coast.
Colonial Pipeline To Restore Service By Weekend
The management of Colonial Pipeline insisted that they will restore much of its service by the weekend. The company issued a statement updating the progress of the investigation.
“Colonial Pipeline is continuing to work in partnership with third-party cybersecurity experts, law enforcement, and other federal agencies to restore pipeline operations quickly and safely,” it said. At present, one pipeline stretched across from North Carolina to Maryland is running under manual control. Eventually, Colonial will reopen all sections.
Despite the update, many oil refiners and distributors remained frustrated by how Colonial shares its information. Energy Secretary Jennifer Granholm seemed to know something during a White House press conference Tuesday.
She said that Colonial’s CEO said the company will decide on restarting by the end of the business day Wednesday. Meanwhile, the Energy Department will instruct Colonial to direct its flow to hardest-hit areas. Granholm said that officials will monitor the situation on prices and panic buying.
Department to Monitor Against Hoarding and Price Gouging
In addition, the department will not tolerate any instances of price gouging, she said. “Just as there was no need to hoard toilet paper at the beginning of the pandemic, there should be no cause for hoarding gasoline, especially in light of the fact that the pipeline should be fully operational by the weekend,” Granholm said.
However, industry experts anticipate price fluctuations. Fuel products take an estimated 15 days to travel from Houston refineries to New York.
“This issue may be slow to improve even days after the pipeline reopens. Americans hoarding gasoline are running the system dry, a system that won’t be able to fully replenish retail stations for perhaps weeks, made worse by a shortage of tanker truck drivers,” De Haan shared in an email.
Rising Gas Prices
Meanwhile, the American Automobile Association reported Monday that the national gas price average jumped from $2.90 to $2.96. In a statement, the association expects prices to continue rising in response to the pipeline shutdown.
“This shutdown will have implications on both gasoline supply and prices, but the impact will vary regionally. Areas including Mississippi, Tennessee, and the East Coast from Georgia into Delaware are most likely to experience limited fuel availability and price increases, as early as this week.
These states may see prices increase three to seven cents this week,” said Jeanette McGee, AAA spokesperson.
National average gas prices are on the rise since early this year. After enjoying low gas prices of as much as $1,75 last year, prices are now creeping to the $3 mark.
The reopening of the economy bolstered demand for fuel. At the same time, as more Americans receive vaccinations, the urge to travel is spiking up as well.
Watch the PBS NewsHour video reporting that panic buying is driving the fuel shortage after Colonial Pipeline hack:
Loading ...Do you foresee a normalization of fuel prices later this week? Or, do you think that the Colonial pipeline’s problems are far from over?
Let us know what you think. Share your comments in the comment section below.
21 Comments
No, I think they will remain the same. The country has gone to hell since Biden became President. Gas was under two dollars Now look at it.
I think this is all part of the “Nudge” process to give us a taste of what is to come in the next deliberate “-demic”. The World Economic Forum (the Davos bunch) is already gaming the next one which will be a Cyber-demic. See the following YouTube video where they expose their next step: https://www.youtube.com/watch?v=tSuCuoQxI20&t=631s
Sadly the greed of independant station owners is blatantly obvious! Add to the that the virtual feckless Elected Officials in both parties failing to curtail the WHite HOuse’s open attack on oil and gas and DIRECTLY the AMERICAN PUBLIC ALL SUFFER ! It is Obvous to me that there is little concern for the working Americans who pay the SALARIES in DC> I Pray that ALL AMERICANS are paying attention and Remove any of them who have been so calous to the PUBLIC and OUR WISHES !
Gas will easily reach $5 per gallon by the end of summer. This is all part of the socialist “Green New Deal” and another way to cripple middle class America! ANYONE who thinks this is not preplanned is a f’n fool!!
This plays right into Biden’s hands to get rid of oil and gas. How can any sane person votr for these idiots.
Energy independence was achieved by trump biden threw that away to help his million dollar contributions biden is a joke
I don’t think it’s a coincidence that Biden shut one pipeline down, and now another pipeline is shut down by a cyber attack. I believe if the government can identify every person who was at the capital on February 6, they are able to find the people involved in this attack. Just another way to shut down the economy to get an infrastructure bill passed. I would rather walk than be trillions of dollars in dept.
Green New BS at work. Harris-Biden is the worst administration to ever hit America. Trump was obnoxious and offensive, but these people are down-right dangerous to everything and everyone except the fascist oligarchs that control them.
This shutdown was planned and there will be more. Americans are sick of The election stealing Dems. And the White House knows it. How else to prevent an uprising for control of our country? Get rid of gas. Or make it so expensive people can’t afford to buy it. The four years PRESIDENT TRUMP was in office gas prices were below $2.a gallon. Days after Biden stole the white House gas goes up. Think about it. Gas is just the beginning, this pipeline is just the first to go. Those who actually voted for this guy is living in the dark and brain washed by fake media.
Most stations here are completely out and a few that aren’t have hiked up their prices. Then to add injury to insult, people were being allowed to hoard and fill up to 5 50 gallon tanks that the customers brought in on a trailer.
SC
No. I believe this is just another way to gain control over the US! It was planned. It is obvious little by little taking our American privilages away. We have got to wake up and get these government officals out of office that are pushing for the socialist society!! They are playing us for fools…I pray we don’t let them continue!
As long as these idiots in the democratic party run this country, EVERYTHING will go sky high. The stupid people who elected him should impeach the whole bunch of these communist lovers!!!
At least be smart once in your life at the next election. THAT is if it doesn’t get rigged again!
This is just another attack by the (China-Joe) Biden administration and the deep controllers of this administration to CONTROL the people of this country. AND THINGS WILL GET WORST. “GOD help AMERICA”
Prices will not go down any time soon. This is probably pre-planned much like the Covid fiasco; the Dems will do anything to get Americans on their knees and totally controlled by our Administration misfits
All this is caused by Democrats!!! NOT RUSSIA!!!!! Democrats will SABOTAGE everything necessary to make their “Green New Deal” look the best possible!!!!!!!!
IMPEACH Biden, Harris, Pelosi
THANK YOU JOE BIDEN……HOW LONG BEFORE EVEN THE DEMOCRATS CAN SEE WHAT HE IS DOING TO THIS COUNTRY ?????????
We need to be laying all this at the feet of our neighbors,Friends and family that voted for tthis change we are just beginning to feel .This storm that is coming you better get ready .Its not going to be pretty .take plenty of pictures if what america was so we can pass it on to our children .We can change it .But i dont think its touched all of us that could change it yet .my fear is .By the time it does .The rules of the land is going thru a process that will permanently put the fix in .That it even thru voting will be able to bring it back .
It is unfortunate that we’re experiencing this situation. Regrettably, I am not surprised. In the top & most critical positions in our Country, the people we have are criminals, Anti-Americans, treasonous, racists, socialist, communist’s, destructive, & evil. To add more icing to the cake, they are idiots. They have devised an unhealthy, unheard of, deeply rooted hate for President Trump & are willing to destroy America, & citizens to void all that he did. They are jealous, uncapable, intimidated, & obsessed. President Trump fulfilled his duties & campaign promises for the good & benefit of America. The DEMS cannot stand his success. And I’m supposed to be able to stand their purely demonic, destructive, criminal failures? Yeah right. WE MUST IMPEACH THIS IDIOT & HIS LITTLE PARTNERS IN CRIME B/F MORE DAMAGE IS DONE. THE REPUBLICANS & CONGRESS MUST FACE REALITY – THEY CANNOT PLAY MEAK, MILD, & NICE – THEY MUST PLAY AS DIRTY + AS THE DEMS. GROW A SET, GET MAD, BE BRAVE & FIGHT THOSE THAT WANT US TO BE DESTROYED & PRISONERS IN A CONCENTRATION CAMP. OUR CHILDREN NEED/MUST KNOW WHAT AMERICA HAS ALWAYS STOOD FOR & HAVE THE FREEDOMS AS OUTLINED IN THE CONSTITUTION & THE RESPECT OUR FOREFATHERS HAD FOR GOD’S LAWS.
I love sharons comment .This is such a breath of fresh air .please run for an office any where .
it’s another tactic lefties are using to punish red states and beyond…,,,,