Panic buying shuts down US gas stations as pipelines begin to reopen
The major US pipeline network forced offline by a cyber attack began to reopen on Wednesday, its operator said, after a five-day shutdown prompted motorists to frantically stock up on gasoline and some gas stations on the US east coast to close.
But Colonial Pipeline warned that it will take “several days” before supplies return to normal.
Faced with a growing shortage, late on Wednesday the White House announced that it had waived the Jones Act — which blocks the use of non-us-flagged vessels, which are cheaper and more plentiful, to transport fuel.
It will be “temporary and targeted” to the company, Biden administration spokeswoman Jen Psaki said in a statement.
“This waiver will enable the transport of additional gas and jet fuel between the Gulf Coast and East Coast ports to ease supply constraints,” she said.
Psaki added the White House would continue to monitor the situation, and urged Americans to “just purchase what they need, and not hoard fuel, as supply is restored”.
The move came after a dozen states — from Florida to Virginia — declared a state of emergency, heightening the sense of panic among consumers who flocked to gas stations bearing fuel cans and other containers to fill up.
A ransomware attack on Friday on Colonial Pipeline forced the company to shut down its entire network, hampering supply in eastern states.
But the company said late on Wednesday it had “initiated the restart of pipeline operations today at approximately 5 pm ET”.
“Following this restart, it will take several days for the product delivery supply chain to return to normal,” the statement said, adding that some of its markets would continue to experience service interruptions.
However, the company pledged to move “as much gasoline, diesel, and jet fuel as is safely possible and will continue to do so until markets return to normal.”
President Joe Biden earlier on Wednesday tried to reassure Americans, saying his officials had been “in very, very close contact” with the company.
The Transportation
Department and Environmental Protection Agency (EPA) have also eased regulations on transporting fuel and temporarily waived clean air rules throughout the affected states to try to ease the supply crunch.
Those few stations with fuel available on Wednesday saw long car lines waiting to fill up.
In Florida, 73 per cent of stations in the Pensacola area were out of fuel, according to gas price tracking site Gasbuddy analyst Patrick De Haan.
In North Carolina’s Raleighdurham area, seven out of 10 stations ran out of gas, as did six in 10 around Georgia’s capital, Atlanta.
“It’s crazy, but we got to deal with it,” customer Vanita said in Raleigh, North Carolina on Tuesday.
Colonial Pipeline operates the largest US fuel conduit system in the United States, which sends gasoline and jet fuel from the Gulf Coast of Texas to the populous east coast through 8,850 kilometres of ducts that serve 50 million consumers.
The restoration of supplies will come as a relief to motorists who drove a wave of panic buying that caused the thousands of stations to run dry, according to Gasbuddy.
US average gasoline prices topped $3 a gallon for the first time since November 2014