Could Colonial Pipeline Shutdown Mean High Gas Prices in Iowa?
Anytime that you have a pipeline shutdown, people start to panic about the price of gas. So when a cyber attack shut down the largest pipeline in the nation this weekend, the panic level is suddenly seems justified. The Colonial Pipeline cyber attack, believed to be the biggest against the American Oil infrastructure, already has fuel prices on the rise, according to the Washington Post.
The Post reports that fuel futures moved around 1% higher in anticipation of a possible fuel shortage. As of today, the national average price for gasoline is at $2.96 per gallon. The White House is reportedly putting together a task force, and the Department of Transportation is looking at relaxing rules to allow fuel to be transported easier. The Post reports that as of Sunday night, Colonial Pipeline called maintaining security and getting systems back online were their highest priorities.
So when does this shutdown start to affect the price at the pump? The Post reports that the shutdown is unlikely to turn into a major shortage or lead to a major price increase. However, it could have a significant regional impact, especially in the Southeast. Officials say that if repairs drag on to next week, there could be some gas stations in the south that begin to run low on gasoline.
The Post reports that repairs that take into next week would also hurt people living in along the East coast. The bottom line is, if you don't want prices to soar, pray that the repairs are done sooner rather than later! Back in 2016, this same pipeline was down for nearly 10 days. Gas prices in Georgia soared by 30 cents per gallon.