Gas prices spiked again Wednesday, bringing the nationwide average for regular gasoline to above $3 per gallon, ABC News reports.
- We haven’t seen prices that high since November 2014.
What happened to gas this week?
Gas prices started to rise after a ransomware cyberattack led to a shutdown of the Colonial Pipeline, which impacted the supply chain of gasoline across the U.S., according to CNN.
- “This shutdown will have implications on both gasoline supply and prices, but the impact will vary regionally. Areas including Mississippi, Tennessee and the east coast from Georgia into Delaware are most likely to experience limited fuel availability and price increases, as early as this week,” said Jeanette McGee, AAA spokesperson in a statement. “These states may see prices increase three to seven cents this week.”
States including Virginia, Florida, North Carolina and Georgia all declared a state of emergency after the Colonial Pipeline cyberattack.
Why did gas prices spike?
Right after the cyberattack, people flocked to gas stations because of a potential shortage, USA Today. People feared shortages even though the U.S. had its own reserves it could tap into.
Still, prices have jumped. Per ABC News, analysts suggested the high prices are because of fuel shortages at the gas station. People are panic buying gasoline because they’re worried about a potential shortage or price hike. So, essentially, we’re creating the shortage that we’re worried about.
Energy secretary Jennifer Granholm said there was no need for “hoarding gasoline.”
- “Let me emphasize that, much as there was no cause for, say, hoarding toilet paper at the beginning of the pandemic, there should be no cause for hoarding gasoline, especially in light of the fact that the pipeline should be substantially operational by the end of this week and over the weekend,” Granholm said.