Gas Prices Set To Go Up

 

Following the shutdown of a major U.S. fuel pipeline in the wake of a cyber attack, gas prices in parts of the country could see a rise of up to seven cents as early as this week, according to the AAA.

The AAA's latest projection comes in a week where the national gas price average rose by six cents to $2.96. In a statement Monday, the AAA said: "If the trend continues, an increase of three more cents would make the national average the most expensive since November 2014–the last time we saw average prices at $2.99 and higher."

Colonial Pipeline, which runs from Texas to New York Harbor and delivers around 45 percent of the fuel consumed in the east coast, paused operations last week after its networks were compromised by a ransomware attack.

spokesperson for the AAA, Jeanette McGee, said: "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," McGee said.

In a statement on May 9, GasBuddy, which tracks over 150,000 gas stations in North America, said that if the shutdown is in place through roughly Tuesday, some stations may run low on gasoline supply.

The statement said: "It's very difficult to pin the exact amount prices may rise, but for now, it appears to be a few cents per gallon, possibly growing more significant if the pipeline remains shut down for more than 2-3 more days.

"Panic buying or hoarding of gasoline will prolong outages and price spikes, making them much worse.

"These challenges may start to manifest in Southeastern states, especially Georgia, Tennessee, South Carolina, North Carolina, Virginia, Mississippi and Alabama, and to a lesser extent, Northern Florida," the statement said.

GasBuddy also noted it will take days for operations to resume normally even after the pipeline is back online.