U.S. Gas Prices Could Reach $3 per Gallon After Ransomware Attack

After last Friday’s ransomware cyberattack on Colonial Pipeline, U.S. gasoline prices are expected to reach at least $3 per gallon depending on how long the oil company remains shut down.

Prior to the recent hack, gas prices have slowly been creeping back up as consumer demand grows for the summer and the economy begins to recover.

According to the American Automobile Association (AAA), the national average for a regular gallon of gas has risen 6 cents to $2.96 over the past week. Another increase of 3 cents would bring the national average up to $2.99, the priciest it would be since November 2014 at $2.98.

The Colonial Pipeline Company hopes to reach a “goal of substantially restoring operational service by the end of the week.”

“While this situation remains fluid and continues to evolve, the Colonial operations team is executing a plan that involves an incremental process that will facilitate a return to service in a phased approach,” the company added.

Colonial provides fuel to more than 50 million Americans in the southern and eastern U.S. or approximately 45% of all fuel to the East Coast markets.

AAA Spokesperson Jeanette McGee, the spike in gas prices will most likely vary by region ranging from 3 to 7 cents. “There could still be residual delays as it takes about 15 –18 days for fuel to flow from Texas to New York,” said McGee.

Motorists have been cautioned against hoarding gasoline, which could simply exacerbate the existing conditions.

“It is true that if the pipeline remains out of service into the early part of next week, roughly Tuesday or so, that some gas stations may run low on gasoline,” explained the travel app GasBuddy.

“Avoid filling up! Stay home a few days and make sure there’s enough for everyone until the pipeline is back online. Don’t ruin the start to summer,” tweeted GasBuddy head of petroleum analysis Patrick De Haan.

Source: CBS News