Gas Shortages, Price Spikes In PA After Pipeline Shutdown

PENNSYLVANIA — Spikes in the price of gas price were reported in Pennsylvania and in other areas after a cyberattack prompted a major gas pipeline shutdown.

Drivers are seeing price increases at the pump as gas averages have increased at least 8 cents in over the past week, according to the Automobile Association of America. The 8-cent rise has brought both the Pennsylvania and the greater Philadelphia average up to $3.10, from $3.02.

The national average, meanwhile, is up to $3.00 from $2.92 last week. The highest average ever recorded in Pennsylvania was $4.07 in July 2008.

Greater increases could be on the way, particularly with increased travel this Memorial Day weekend just around the corner, AAA says. The group forecasts some 37 million around the nation to travel 50 miles or more from home, a 60 percent increase over last year's record-low 23 million.

The ransomware cyberattack hit Colonial Pipeline, which delivers 45 percent of fuel to the East Coast, AAA said. The company shut down its main pipeline, which runs from New York to Texas, as a precaution.

There is enough gas from other pipelines and from tanker trucks to "ease the strain," the auto group says, but not fully resolve the issues. Even once the main pipeline is back running — Colonial hopes to be there by the end of the week — there could be residual delays of up to two to three weeks as the flow is restored.

The price is surge is not expected to prevent holiday travel.

“We don’t expect higher gas prices to deter motorists this holiday season as many Americans are eager to travel,” Jeanette C. McGee, AAA spokesperson, said in a statement. “We typically find when pump prices increase, travelers look for more free activities or eat out less while on vacation, but still take their planned trips.”

Panic buying, or the "hoarding" of gasoline, could contribute to greater shortages and U.S. officials – including President Biden – sought to reassure the public.

Tom Kloza, the head analyst for Oil Price Information Service, said that despite warnings to stay calm, stations in southeastern states impacted by the Colonial Pipeline shutdown are now seeing daily sales volumes two or three times the normal pace, leading to outages at many points.

Marketers are struggling with how to address a consumer panic that can lead to a "self-fulfilling prophecy" of little fuel availability, Kloza said. Some have tried limiting customers to 10 gallons or $30 worth of fuel but find that such action incurs customer wrath as well as confusion between the pumps and inside the store.

To offset further shortages, U.S. regulators said Tuesday they are temporarily suspending clean fuel requirements in several states and the nation's capital. The impacted states and territories include Alabama, Arkansas, District of Columbia, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.

The emergency declaration provides for regulatory relief and assistance in supporting emergency relief efforts to transport gasoline, diesel, jet fuel and other refined petroleum products into New Jersey and other affected states.

Colonial said they immediately engaged cybersecurity experts after discovering the issue and launched an investigation into the nature and scope of the incident, the company said.

"We have remained in contact with law enforcement and other federal agencies, including the Department of Energy, who is leading the Federal government response," the company said.

With reporting from Patch correspondent Tom Davis