Pump problems: Rising gas prices after pipeline cyberattack hit Delawareans in their pockets

By Mike Finney
Posted 5/12/21

DOVER — With the Colonial Pipeline still reeling from the effects of a cyberattack that shut it down Friday, motorists in East Coast markets — including Delaware — are feeling pain at the pump.

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Pump problems: Rising gas prices after pipeline cyberattack hit Delawareans in their pockets

Posted

DOVER — With the Colonial Pipeline still reeling from the effects of a cyberattack that shut it down Friday, motorists in East Coast markets — including Delaware — are feeling pain at the pump.

Gas prices in Delaware stood at an average of $2.89 per gallon Wednesday, up a penny from the previous night and 11 cents over the past week. The national gas average was $3 per gallon.

Jessie Wilson of Bridgeport, Connecticut, filled up his RV with around $100 in fuel at the Royal Farms in Cheswold on Wednesday morning. He was headed to find a camping spot near Dover International Speedway for this weekend’s NASCAR races, where he will be rooting for his favorite driver, Joey Logano.

“If it’s not one thing, it’s another,” Mr. Wilson said. “These higher gas prices aren’t anything new. Anyone who is paying attention should have seen the cost of gas creeping up higher and higher ever since Joe Biden took over as president.

“But we’ll still manage to get by. We’ve been cooped up for a year now with the COVID-19 pandemic, and everybody is just about ready to get back out and enjoy life again and get back to normal. Trust me, we’ll pay the price. What choice do we have?”

There didn’t appear to be any long lines at gas pumps in central Delaware on Wednesday, though there remain concerns that some stations may eventually run out of fuel before they’re able to receive their next delivery.

U.S. Energy Secretary Jennifer Granholm said motorists should avoid rushing out and hoarding gasoline during a White House press conference Tuesday.

“Just as there was no need to hoard toilet paper at the beginning of the pandemic, there should be no cause for hoarding gasoline, especially in light of the fact that the pipeline should be fully operational by the weekend,” Ms. Granholm said.

The last time the national average price for gas was this high was about three years ago. Prior to that, the average price hadn’t topped $3 since 2014.

With 45% of the fuel supply for East Coast markets shut off due to the ransomware attack on the Colonial Pipeline, motorists have been buying up gas at a frantic pace, and now, stockpiles are running low. Many gas stations in Virginia and other states are reporting that their tanks have run dry, according to the U.S. Energy Information Association.

The Colonial Pipeline’s operator said it intends to have the system back online by this weekend and has restarted some segments already. If that scenario plays out, most areas should avoid major fuel shortages, and gas prices should remain fairly stable.

The pipeline runs from the Gulf Coast to the New York metropolitan region, but states in the Southeast are more reliant on the pipeline for fuel. Other parts of the country have more sources to tap. For example, a substantial amount of fuel is delivered to states in the Northeast by massive tankers.

The White House said Wednesday that the Department of Transportation is now allowing Alabama, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, North Carolina, Tennessee and Virginia to use interstate highways to transport overweight loads of gasoline and other fuels under existing disaster declarations.

The department’s Maritime Administration completed a review of potential actions available under the Jones Act, a U.S. maritime law that requires shipments between U.S. ports, including fuel, to be moved by American-flagged ships.

The Department of Homeland Security is prepared to review any temporary Jones Act waiver requests from companies if there is not sufficient capacity to get to regions suffering fuel shortages, said White House press secretary Jen Psaki on Wednesday.

But there are worries that the problem could last longer. And in that case, prices at the pump may spike — and that will affect areas along the East Coast from Delaware into Georgia and also areas from Mississippi to Tennessee.

“It stinks, but (what) can you do?” said Elaine Marker, outside of the Wawa in north Dover on Wednesday morning. “It’s not like you can grow your own gas in your backyard. We’re kind of at the mercy of big oil companies — always have been.”

With the weather warming up and Memorial Day on the horizon, many Americans are ready to join Mr. Wilson and Ms. Marker on the road.

AAA is expecting more than 37 million people to travel 50 miles or more from home May 27-31, an increase of 60% from last year, when only 23 million traveled, the lowest on record since AAA began recording the data in 2000.

“As more people get the COVID-19 vaccine and consumer confidence grows, Americans are demonstrating a strong desire to travel this Memorial Day,” said Paula Twidale, senior vice president of AAA Travel. “This pent-up demand will result in a significant increase in Memorial Day travel, which is a strong indicator for summer, though we must all remember to continue taking important safety precautions.”

Those travelers can expect gas prices to be the most expensive since 2014, with the national average possibly more expensive than $3 per gallon.

“We don’t expect higher gas prices to deter motorists this holiday season, as many Americans are eager to travel,” said Ragina C. Ali, public and government affairs manager for AAA Mid-Atlantic. “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.”

Gas prices will be increasing in part due to higher demand. As demand goes up, gas stations are working to adjust delivery schedules to keep pace.

However, there have been instances where some stations are seeing low to no supply at pumps for a few days due to delayed deliveries. Over the holiday weekend, some gas stations in popular travel destinations — like beaches and mountain areas — may experience this situation.

INRIX, an analytics company, said people’s driving habits are already changing, as many have received their COVID-19 vaccinations and are headed back onto the highways. Bob Pishue, an INRIX transportation analyst, said traffic will only continue to worsen headed toward Memorial Day weekend.

“Although vehicle trips are down as much as 40% in some metros, afternoon congestion is nearly back to pre-pandemic levels,” he said. “With the increase of holiday travelers to the typical afternoon commute, drivers in the larger metros should expect longer delays heading into the holiday weekend.

“Travelers should anticipate delays to start on (May 26) and continue through Memorial Day. Our advice to drivers is to avoid the evening commute times and plan alternate routes.”

The Associated Press contributed to this article. 

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