US gas prices rise amid major pipeline closures

US gas prices rise amid major pipeline closures

Washington: National average gas prices in the US have risen above $ 3 per gallon for the first time since 2014 amid a six-day shutdown of a major fuel pipeline following a cyber security attack.
The average American paid $ 3.008 for a gallon of gas on Wednesday, up from $ 2.985 the previous day and $ 2.927 a week earlier, the Xinhua quoted the American Automobile Association (AAA) as saying.
The American Auto Club estimated on Monday that the increase in gas prices this week would be in reaction to the closure of the colonial pipeline, which saves about 45 percent of all fuel on the East Coast.
“This shutdown will have an impact on both gasoline supply and prices, but the effect will vary regionally,” AAA spokesman Janet McGee said in a statement on Monday.
“Areas including Mississippi, Tennessee and Georgia to the East Coast in Delaware are likely to experience limited fuel availability and price increases,” McGee said, adding these states could increase prices by three to seven cents this week. is.
Energy Secretary Jennifer Granholm on Tuesday urged Americans not to hoard gasoline.
“It’s not that we have a shortage of gasoline. It’s that we have this supply shortage. And that things will be back to normal soon,” she said.
On Wednesday evening, Colonial Pipeline announced that the first phase in the restart process began at around 5 pm.
“After this restart, it will take several days for the product distribution supply chain to return to normal.
“Some markets served by the Colonial Pipeline may experience intermittent or continue to experience intermittent service interruptions during the start-up period,” it added.
However, an increasing number of gas stations along the East Coast do not have fuel as concerns continue to worsen over gas shortages.
As of Wednesday morning, 28.2 percent of all gas stations in North Carolina, 17.45 percent in Georgia and 17.09 percent in Virginia were without gasoline, according to GasBuddy’s latest data, which tracks fuel demand, prices and outages.
On May 7, all pipeline operations were temporarily halted by the Colonial Pipeline Company after a cybersecurity attack involving ransomware was detected.
The Colonial Pipeline is the largest sophisticated-product pipeline in the US, transporting more than 100 million gallons of fuel per day on the East Coast.

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