MD Gas Outages Double, Prices Increase; Don't Hoard Hogan Asks

MARYLAND — Reports of gas stations without fuel doubled throughout the afternoon Wednesday in Maryland, but Gov. Larry Hogan said supplies are moving slowly and residents should not buy gas in a panic.

The problem is a result of a shutdown Friday of a major gasoline pipeline that serves Maryland following a cyberattack. About 5 p.m. Wednesday, officials with Colonial Pipeline said pumping operations had restarted. But, it will take several days for the product delivery supply chain to return to normal.

As of 11 pm. Wednesday, 31 percent of Maryland's stations had pumps without gasoline, according to GasBuddy, which tracks supply. In D.C., about 42 percent of stations are out of gas, and 56 percent of Virginia stations had run out of some grades of gas, according to GasBuddy.

An analyst with GasBuddy said consumers should expect slight improvement in gas supplies overnight, a small increase in shortages on Thursday, and more recovery in 48 hours and beyond.

"The Colonial Pipeline has restarted after a short-term disruption," Hogan tweeted Wednesday night. "It will take some time for normal operations to resume, but the supply chain is moving. We continue to advise Marylanders that there is no need for panic buying or hoarding."

Drivers can scout ahead for fuel by using online tools, such as the website and phone app Gas Buddy, which has updates on stations that still have gas supply and those that are running low.

Hogan on Wednesday authorized the Maryland Department of Transportation to take emergency measures to respond to the pipeline incident and ensure continuity of fuel supply throughout the state.

“The emergency actions that we are taking will provide the state the flexibility it needs to address any disruption in fuel supply,” Hogan said in a news release. “It is important for Marylanders to know that the supply chain is still working — albeit more slowly than usual — and there is no need for panic buying. While the operators of the pipeline anticipate that the disruption is likely to be short-term, we continue to prepare for all contingencies as part of our statewide response.”

With the governor’s designation of authority, MDOT Secretary Greg Slater is issuing emergency waivers of weight restrictions and hours-of-service requirements for Maryland motor carriers. This should help relieve supply pressures throughout the state, and address transit issues as additional supplies are brought in from out of state, Hogan's office said.

The governor will provide an update on the state's response at his press conference at 4:30 p.m.

The national average price of gasoline Wednesday has passed the $3 per gallon mark for the first time since 2014, according to GasBuddy, the travel and navigation app. COVID-19 related recovery is pushing things back to normal and leading to rising gasoline demand, the company said, which has been exacerbated by the pipeline shutdown.

AAA's gas finder said the national average for a gallon of gas was $3 Wednesday. In Maryland, the average price was $2.94 a gallon.

“While this is not a milestone anyone wants to celebrate, it’s a sign that things are slowly returning to normal,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “In this case, rising gas prices are a sign Americans are getting back out into the world — attending baseball games, going to concerts, taking a road trip — basically staying anywhere but at home. This summer may see some blockbuster demand for fuel as well, as Americans find it very challenging to travel internationally, leading many to stay in the confines of U.S. borders, boosting some weeks to potentially record gasoline demand.”

The U.S. Department of Transportation said Tuesday it is allowing Maryland and other states in the Southeast and Mid-Atlantic to use interstate highways to transport overweight loads of gasoline and other fuels under existing disaster declarations.

Virginia Gov. Ralph Northam on Tuesday declared a state of emergency, which a AAA Mid-Atlantic analyst said will help to prevent supply disruptions—realized or expected — across that state. North Carolina's governor has also declared a state of emergency.

Federal authorities on Tuesday waived rules that bar the sale of conventional gasoline in Maryland and other areas where reformulated fuel is required. Regulators will permit the sale of gasoline that doesn’t meet requirements meant to curtail smog, Bloomberg reported.

Colonial's shippers had delivered about 967,000 barrels or roughly 41 million gallons to vendors in Atlanta, Charlotte and Baltimore, among other cities, the company said Tuesday in a news release.

To prepare for the pipeline to resume use Colonial has taken delivery of an additional 2 million barrels (about 84 million gallons) from refineries.

Increased aerial patrols of pipeline right of way are ongoing, and the company sent out more than 50 employees to walk and drive an estimated 5,000 miles of pipeline each day.

In response to the recent ransomware attack on the Colonial Pipeline, U.S. Environmental Protection Agency Administrator Michael Regan waived the federal Reid vapor pressure requirements for fuel sold in reformulated gasoline areas of Maryland, the District of Columbia, Pennsylvania, and Virginia to boost the supply of gasoline.

The waiver will continue through May 18, an EPA news release said.

The Federal Motor Carrier Safety Administration declared an emergency in response to the "unanticipated shutdown" of the Colonial pipeline, which supplies gasoline, diesel, jet fuel and other petroleum products through Maryland and other affected states and territories. The pipeline runs from Texas to New Jersey.

The company says it delivers 45 percent of the fuel used in the East Coast. CNN reported that gas prices could rise over $3 in the Northeast and elsewhere.

"With each day the situation grows more critical in the region. Pump prices have jumped by 8 cents a gallon in Maryland since last Tuesday," John Townsend, AAA Mid-Atlantic’s manager of public and government affairs, told Patch on Tuesday.

“Panicked buying” is “running stations in the region dry,” De Haan, a fuel analyst with GasBuddy, told CNN Business. He warned that the “irrational behavior” could prolong supply issues for weeks.

"ONLY GET GAS IF YOU ABSOLUTELY HAVE TO," GasBuddy tweeted Tuesday. "Do not hoard fuel."

Related: VA Drivers Scramble To Buy Gas Day After Emergency Declaration

The shutdown of the pipeline will have a temporary impact on gasoline prices, which were already trending higher, he said, and complicating matters, crude prices are rising. The increase in crude oil prices comes as several Gulf Coast refineries have reduced runs as a result of the Colonial shutdown.

Colonial is manually operating a segment of the pipeline from North Carolina to Maryland. "That bodes well," said Townsend. "According to one source, 7 percent of gas stations in Virginia were out of fuel yesterday."

The price point Tuesday for a gallon self-serve regular is $2.92 in Maryland, compared to $2.84 last Tuesday; $2.79 in Virginia, compared to 2.74 last Tuesday; and $3.08 in the District, compared to $3.03 one week ago.

The Colonial Pipeline carries gasoline and diesel from refineries in Texas, supplying states with fuel across the southeastern U.S. and up the Eastern seaboard to the New York harbor.

Once the pipeline restarts, it will take days for normal conditions to occur.

The affected states and territories also include Alabama, Arkansas, District of Columbia, Delaware, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.

NBC News reported that a "Russian criminal group" may be responsible for a ransomware attack that shut down the major U.S. fuel pipeline, two sources familiar with the matter said Sunday. The group, known as DarkSide, has a "sophisticated approach to the business of extortion," the sources said.

Fuel shortages could happen because of the shutdown, federal officials said. An emergency declaration issued last week provides for regulatory relief and assistance in supporting emergency relief efforts to transport gasoline, diesel, jet fuel and other refined petroleum products into Maryland and other affected states.

Colonial Pipeline Co., based in Alpharetta, Georgia, said it learned it was the victim of a cybersecurity attack and has since determined the incident involved ransomware.

Quickly after learning of the attack, Colonial said it "proactively took certain systems offline to contain the threat."