Colonial Pipeline disruption leads to lack of gas supply

Cyberattack on Colonial Pipeline a few days ago has resulted in lack of gas supplies in the country as gas stations in East Coast are on starting to run out of fuel, reported Bloomberg.

The East Coast, as a consequence of disruption at Colonial Pipeline, is at a risk of “temporary, but major shortage” of fuel, said Citigroup Inc.

According to industry consultant FGE, the region is losing around 1.2 million barrels a day of gasoline supply.

As of late Monday, around 7 per cent gas stations in Virginia ran out of fuel, said GasBuddy analyst Patrick DeHaan.

In addition to that, emergency gasoline and diesel shipments are also on the way to Atlanta and other south-eastern cities from Texas.

Lack of gas supply has led to an increase in the price of gas to the highest level since 2014.

American Automobile Association said that the average retail gasoline price have risen to $2.985 a gallon—highest since late 2014.

“AAA forecasts gas prices to climb this week in reaction to the shutdown of the Colonial Pipeline. The longer the pipeline is offline, the larger the impact on the east coast,” said the road travel organization, reported CNBC.

(With inputs from Bloomberg)

Picture Credits: CNBC