Gasoline prices have spiked as most of a major oil pipeline that carries more than 100 million gallons of fuel from Texas to New Jersey each day remains closed, the American Automobile Association said Monday.
The national gas price average jumped six cents to $2.96 on the week. If prices rise three more cents, the national average would be the highest since November 2014, AAA said.
And AAA said it expects gas prices to continue to climb this week due to the shutdown of Colonial Pipeline, which closed operations Friday after it was hit by one of the largest ever cyberattacks on critical US infrastructure.
The longer the pipeline remains down, the more likely a severe surge in prices at the pump is likely to be, analysts say. And even once operations resume, it could take weeks for prices to come down, especially in the Southeast.
The spike in costs comes just weeks before Memorial Day weekend, when millions of Americans are expected to hit the road for long-awaited vacations after deferring holidays during the pandemic.
“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,” Jeanette McGee, AAA spokesperson, said in a statement.
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