The average cost of a gallon of regular gasoline rose above $ 3 per gallon in New York State last week, to $ 3,004 on Monday, according to the American Automobile Association (AAA).
The increase has also been steady over the past week for the Garden State. Prices in North Jersey were well above $ 3 a gallon on Monday. Drivers paid up to $ 3.21 per gallon for regular gasoline, according to AAA.
Nationwide, average gasoline prices rose six cents last week to $ 2.96 per gallon and that increase is likely to continue due to a number of factors, including the recent closure of the Colonial Pipeline.
“This closure will have implications for both the supply and the prices of gasoline, but the impact could vary depending on the region. Areas including Mississippi, Tennessee and the east coast from Georgia to Delaware are more likely to experience limited fuel availability and price increases, as early as this week, ”said Jeanette McGee, AAA spokeswoman. “These states can see prices rise three to seven cents this week.”
The pipeline, which delivers approximately 45% of all fuel to the East Coast and runs from Texas to New York Harbor, was shut down over the weekend due to a cybersecurity attack and an extortion attempt by a criminal gang. The Associated Press reported that some lateral lines have reopened, but it is not known when the main line in its entirety, including the gasoline line, will be operational.
The 5,500-mile pipeline transports more than 100 million gallons of fuel a day, through a system that spans more than 5,500 miles between Texas and our region.
Experts say that as long as drivers don’t panic, the cyberattack shouldn’t cause a gas shortage on the East Coast.
But gas prices have been rising steadily for months, even in central New York. According to estimates, the cost of a gallon of regular gasoline in the Syracuse area has risen from about $ 2.08 in November 2020 to $ 2.92 on Monday.
Forbes reports that the increase is not surprising due to several factors beyond the pipeline, including increased demand as Covid-19 restrictions have been relaxed and refinery maintenance, among other factors.
“Since last November 3, the average price per gallon of regular gasoline in the United States has skyrocketed by 75 cents,” wrote David Blackmon in March. “Markets clearly see the Biden / Harris administration as one that will work to inhibit US oil production, which will also have the effect of tightening the global market, and traders have responded by raising the price of crude.”
But the AP also notes that the numbers are higher compared to a year ago because much of the country was under lockdown and other restrictions due to the coronavirus pandemic. With fewer trips this past spring and summer, declining demand drove gasoline prices down.
Gasoline prices today are about the same as in May 2019 and May 2018, according to estimates.
Still, concerns remain about the impact of a prolonged closure of the Colonial Pipeline and possible shortages due to a lack of qualified fuel truck drivers.
On Monday, the company said in a statement that it aims to “substantially restore operational service by the end of the week.”
More than 1,000 gas stations in the Southeast reported running out of gas on Tuesday, mostly due to what analysts say is unwarranted panic buying among drivers.
Experts say that the problem should not create a gas shortage in our area, because the region is not so dependent on its supply. Foreign imports of gasoline and other pipelines complement gasoline supplies in the area.
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