The gas shortage sweeping the east and south coasts is about to peak, and panic buying is triggering price hikes and empty gas stations in states such as Georgia and the Carolinas.
The incident began with a cyberattack. According to the Federal Bureau of Investigation, an organized crime group known as DarkSide stole the system that runs Colonial Pipeline. This vital pipeline stretches for 5500 miles between Texas to New Jersey, forcing a shutdown that began on May 8. The outage may only last just a few days. The pipeline’s operator is expected to announce a date for service restoration on Wednesday. But the experts interviewed on CNBC and other outlets suggest the effects could last through the weekend and into the next.
This could cause an effect of dominoes that may, although temporary, be carried over to areas beyond the pipeline’s service area.
Travel limitations
Certain U.S. airlines are running short of jet fuel. At the very least, American Airlines has included refueling stops in certain long-haul flights and is considering whether to transport fuel to airports affected by the shortage per CNBC. Southwest Airlines, for its part, is filling up planes that fly to Nashville and other areas that are affected with fuel in addition to local supply.
If the pipeline will be back in operation this Friday, U.S. air travel isn’t likely to be affected, as energy experts tell the Hill. However, flights may be canceled if it continues longer, and ticket prices can skyrocket.
Similar to Ubers as well as Lyfts. Rideshare services are already experiencing massive shortages of drivers and an increase in gas costs (which were amid a rise before this shutdown) Colonial Pipeline shutdown) would make fares more expensive for those in states directly affected by the shutdown.
The toilet paper crisis:
Trucking companies are suffering from a shortage of drivers, which has affected the delivery of food, household goods, and other items from the outbreak.
The Colonial Pipeline delivers about 45 percent of the east coast’s gasoline, including diesel, jet fuel, and jet fuel, as per AAA. If the shutdown continues for a long time, it will take longer for stores across wide areas of the nation to replenish shelves with toilet paper, peanut butter, and the rest of the products that keep America bustling.
Another job crisis
Many small-scale companies, such as landscapers and taco trucks, depend on a consistent fuel supply to ensure their operations run smoothly.
The folks stocking up on gas-filled trunks canisters are reducing the supply to everyone, which means that these workers are disproportionately affected.
As it will take two weeks to get fuel flowing through Texas through New York once the pipeline is restored, according to AAA, the current panic buying could trigger an effect that lasts longer than the shutdown itself. This is another blow to the gut for the east and south coast businesses trying to recover from the recession caused by a coronavirus and the coronavirus outbreak.
