KEY POINTS
- Localized gasoline shortages could get worse and prices could jump even more if the Colonial Pipelne is not restarted by the weekend, as the company projected.
- Gasoline stations ran out of fuel in some states and prices jumped by more than 10 cents overnight in some areas.
- The Colonial Pipeline was hit by a cyber attack last week, and its shutdown disrupts the transport of about half the gasoline used by the East Coast.
If the Colonial Pipeline is not back in business by the weekend, prices could continue to rise at the pump and there will be broader localized fuel shortages across the southeast and mid-Atlantic regions.
Gasoline stations that could not get enough fuel were already closed in some states, and prices jumped overnight, by as much as 10 cents or more per gallon in some areas.
“This turns into a crisis by the end of the week, if it’s not resolved, particularly with Memorial Day coming,” said John Kilduff, founding partner of Again Capital. “People are going to start topping off their tanks.”
