Energy Secretary Jennifer Granholm urged drivers Tuesday not to rush to the pumps to fill up on gasoline after the shutdown of the Colonial Pipeline constrained supply in some southeastern states.
“There should be no cause for hoarding gasoline,” Granholm said at the White House press briefing. “It’s not that we have a gasoline shortage. We have this supply crunch. Things will be back to normal soon.”
Granholm said the CEO of the Colonial Pipeline told her the company plans to make a decision by the end of tomorrow on restarting the pipeline but that it will take a few days to “ramp up operations.” The company has said it plans to be up and running by the end of the week.
Gas stations across the southeast have run out of gasoline following the Colonial Pipeline cyberattack and shut down as people rush to the pumps to fill up.
GAS STATIONS COMING UP EMPTY FOLLOWING PIPELINE HACKING
In Georgia, Florida, South Carolina, North Carolina, and Virginia, gasoline demand rose more than 40% on Monday, said GasBuddy analyst Patrick De Haan. All five states are served by the Colonial Pipeline, a 5,500-mile artery from Houston to the doorstep of New York City that is responsible for nearly half of the East Coast’s fuel supply, including gasoline, jet fuel, and diesel.
The shutdown of the Colonial Pipeline has pushed gasoline prices to $2.99 per gallon on average and could breach $3 for the first time since late 2014, according to AAA.
Gas prices
Tom Kloza, the global head of energy analysis at Oil Price Information Service, attributed the price increase to panic among drivers.
“Markets are calming down; consumers need to do likewise,” Kloza posted on Twitter.
In response to the gasoline shortages, the Environmental Protection Agency issued an emergency fuel waiver for states affected by the pipeline shutdown.
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The Biden administration is also weighing whether to waive the Jones Act temporarily, which would allow foreign-flagged vessels to carry petroleum products from ports on the Gulf Coast to the Atlantic.
