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Gas prices surge past $3 for the first time since 2014 as pipeline disruption cripples supply

Tim Levin   

Gas prices surge past $3 for the first time since 2014 as pipeline disruption cripples supply
LifeThelife1 min read
  • The national average price for regular gas hit $3 per gallon on Wednesday, according to AAA.
  • The jump comes after a cyberattack forced the shutdown of the country's largest refined oil pipeline.
  • Colonial Pipeline is expected to announce Wednesday whether it can restart operations.

The price of regular gasoline shot past $3 per gallon on Wednesday as fallout from a cyberattack on the nation's largest fuel pipeline continues to devastate the US fuel supply.

The average price for a gallon of gas is now $3.008, according to automotive group AAA. Mid-grade gas rose to $3.325 per gallon, while a gallon of premium now costs $3.597 on average. It's the first time the national average has risen above the symbolic $3 per gallon mark since the fall of 2014.

On Saturday, Colonial Pipeline, the nation's largest refined-oil pipeline operator, reported a cyberattack that forced it to shut down operations of its 5,500 miles of pipeline. The pipeline is a crucial conduit that transports diesel, gasoline, and jet fuel from refineries in Texas up through the East Coast. It carries nearly half of the fuel consumed by the East Coast, and has never been shut down before.

On Monday, the FBI said a hacking group called DarkSide carried out the attack. Colonial has told US officials it will know by Wednesday whether it can safely restore operations.

On Tuesday, US Energy Secretary Jennifer Granholm said that the pipeline should be "substantially operational" by the end of the week, but said that the "supply crunch" could drag on even after service is restored. She urged Americans against panic buying gasoline as many states on the Eastern Seaboard reported supply issues and hundreds of gas stations ran dry.

AAA warns that the longer the pipeline is shut down, the greater the impact on supply and prices will be. Regions including Mississippi and Tennessee and the East Coast from Georgia to Delaware will likely see the most pronounced jumps in price as the closure drags on, the group said Monday. Other parts of the country may barely be affected.

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