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Saturday, November 23, 2024

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 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 will return to normal.

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Faced with a growing shortage, a dozen states ranging 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 Friday on Colonial Pipeline forced the company to shut down its entire network, hampering supply in eastern states.

But the company said late Wednesday it had "initiated the restart of pipeline operations today at approximately 5 p.m. ET" (2100 GMT).

"Following this restart, it will take several days for the product delivery supply chain to return to normal," the statement said. 

"Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the start-up period."

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."

US President Joe Biden earlier 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 eased regulations on transporting fuel and temporarily waived clean air rules throughout the affected states to try to ease the supply crunch.

– Relief for motorists –

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 5,500 miles (8,850 kilometers) 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 thousands of stations to run dry, according to gas price tracking site GasBuddy — which itself was crashing under the volume of new users.

US average gasoline prices rose $3 a gallon for the first time since November 2014, according to the American Automobile Association (AAA).

Transportation Secretary Pete Buttigieg on Wednesday urged consumers to remain calm.

"We recognize the concern that is out there, and that's why we haven't wasted any time to get into action," he told reporters at the White House. "Hoarding does not make things better."

The FBI blamed the shadowy DarkSide group for the ransomware attack, in which hackers freeze a corporate IT systems and then demand a huge payment to release it.

But according to a report in The Washington Post on Wednesday, Colonial Pipeline has no plans to pay the ransom.

Instead it is working with a cybersecurity firm to rebuild its systems or restore them from backups, the report said, citing people familiar with the matter.

The company did not respond to AFP's request for comment.

– 'It's crazy' –

Those few stations with fuel available on Wednesday saw long lines of cars waiting to fill up.

In Florida, 73 percent of stations in the Pensacola area were out of fuel, according to GasBuddy analyst Patrick De Haan. 

In North Carolina's Raleigh-Durham area, seven out of 10 stations ran out of gas, as did six in 10 around Georgia's capital, Atlanta. 

About 45 percent of stations in Virginia were empty and gasoline was also starting to become scarce in Washington, where 10 percent of stations had run out, according GasBuddy data.

"It's crazy, but we got to deal with it," a customer who gave her name as Vanita told AFP as she filled up her car in Raleigh, North Carolina on Tuesday.

Buttigieg joined the US Consumer Product Safety Commission in urging drivers to use caution.

"Now is the time to be safe and sensible," Buttigieg said, adding that "under no circumstances should gasoline ever be put into anything but a vehicle directly or an approved container."

CPSC on Twitter warn of potential "deadly consequences."

"Do not fill plastic bags with gasoline. We know this sounds simple, but when people get desperate they stop thinking clearly," the agency said.

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