No Gas Shortage Reported In MD, Drive As Normal: Gov. Hogan

Annapolis MD

11 May, 2021

4:58 PM

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MARYLAND — While supplies of gasoline are running out in parts of the Carolinas, Florida and the Atlanta area, there were no reports of gas shortages in Maryland on Tuesday. The problem is a result of a shutdown of a major gasoline pipeline that serves Maryland following a cyberattack. Federal authorities on Tuesday waived rules that bar the sale of conventional gasoline in Maryland and other areas where reformulated fuel is required. Regulators will permit the sale of gasoline that doesn't meet requirements meant to curtail smog, Bloomberg reported. State officials reviewed gasoline supplies at Tuesday's cabinet meeting, and Gov. Larry Hogan said since Saturday morning Maryland has been closely coordinating with the federal administration and local jurisdictions. "While the operators of the pipeline currently anticipate that the disruption is likely to be short-term, we are prepared for all contingencies," Hogan tweeted. "We will keep Marylanders informed of any significant impacts on our fuel supply. For now, drivers should proceed as normal." In response to the recent ransomware attack on the Colonial Pipeline, U.S. Environmental Protection Agency Administrator Michael Regan waived the federal Reid vapor pressure requirements for fuel sold in reformulated gasoline areas of Maryland, the District of Columbia, Pennsylvania, and Virginia to boost the supply of gasoline. The waiver will continue through May 18, an EPA news release said. The Federal Motor Carrier Safety Administration declared an emergency in response to the "unanticipated shutdown" of the Colonial pipeline, which supplies gasoline, diesel, jet fuel and other petroleum products through Maryland and other affected states and territories. The pipeline runs from Texas to New Jersey. The company says it delivers 45 percent of the fuel used in the East Coast. CNN reported that gas prices could rise over $3 in the Northeast and elsewhere. As of 4:45 p.m. Tuesdsay, 7.7 percent of the gas stations in Virginia and 8.5 percent in North Carolina don't have fuel, according to outage figures reported by GasBuddy, an app that tracks fuel prices and demand. "With each day the situation grows more critical in the region. Pump prices have jumped by 8 cents a gallon in Maryland since last Tuesday," John Townsend, AAA Mid-Atlantic's manager of public and government affairs, told Patch. Virginia Gov. Ralph Northam has declared a state of emergency, which Townsend said will help to prevent supply disruptions—realized or expected — across that state. "Panicked buying" is "running stations in the region dry," Patrick De Haan, a fuel analyst with GasBuddy, told CNN Business. He warned that the "irrational behavior" could prolong supply issues for weeks. "ONLY GET GAS IF YOU ABSOLUTELY HAVE TO," GasBuddy tweeted Tuesday. "Do not hoard fuel." Related: State Of Emergency Declared In Virginia Over Gasoline Shortages The shutdown of the pipeline will have a temporary impact on gasoline prices, which were already trending higher, he said, and complicating matters, crude prices are rising. The increase in crude oil prices comes as several Gulf Coast refineries have reduced runs as a result of the Colonial shutdown. Colonial is manually operating a segment of the pipeline from North Carolina to Maryland. "That bodes well," said Townsend. "According to one source, 7 percent of gas stations in Virginia were out of fuel yesterday." The price point Tues day for a gallon self-serve regular is $2.92 in Maryland, compared to $2.84 last Tuesday; $2.79 in Virginia, compared to 2.74 last Tuesday; and $3.08 in the District, compared to $3.03 one week ago. The Colonial Pipeline carries gasoline and diesel from refineries in Texas, supplying states with fuel across the southeastern U.S. and up the Eastern seaboard to the New York harbor. Once the pipeline restarts, it will take days for normal conditions to occur. The affected states and territories also include Alabama, Arkansas, District of Columbia, Delaware, Florida, Georgia, Kentucky, Louisiana, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia. North Carolina's governor also declared a state of emergency on Tuesday as reports of gas stations running out of fuel surfaced. According to GasBuddy data, Sunday gasoline demand in Georgia, North Carolina, South Carolina, Tennessee and Virginia was nearly at the same level as Friday, but slightly lower than Saturday. NBC News reported that a "Russian criminal group" may be responsible for a ransomware attack that shut down the major U.S. fuel pipeline, two sources familiar with the matter said Sunday. The group, known as DarkSide, has a "sophisticated approach to the business of extortion," the sources said. Fuel shortages could happen because of the shutdown, federal officials said. An emergency declaration issued last week provides for regulatory relief and assistance in supporting emergency relief efforts to transport gasoline, diesel, jet fuel and other refined petroleum products into Maryland and other affected states. Colonial Pipeline Co., based in Alpharetta, Georgia, said it learned it was the victim of a cybersecurity attack and has since determined the incident involved ransomware. Quickly after learning of the attack, Colonial said it "proactively took certain systems offline to contain the threat." "These actions temporarily halted all pipeline operations and affected some of our IT systems, which we are actively in the process of restoring," the company said. "At this time, our primary focus continues to be the safe and efficient restoration of service to our pipeline system, while minimizing disruption to our customers and all those who rely on Colonial Pipeline," the company said. "We appreciate the patience and outpouring of support we have received from others throughout the industry."