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Shut pipeline drains US southeast fuel pumps

  • : Oil products
  • 21/05/11

Fuel supplies at retailers in the US southeast are starting to drain as Colonial Pipeline's main gasoline and diesel lines supplying the region remained shut for a fifth day.

Fuel store operator RaceTrac, which oversees more than 750 locations in five southern states, said today that temporary fuel outages are possible at locations in Alabama, Georgia, Louisiana and Tennessee.

In Alabama, retail locations may lack supplies for sustained periods because unusually high demand has caused long lines at fuel terminals, which still have product to supply.

"Panic buying is causing outages at retail locations statewide," Petroleum & Convenience Marketers of Alabama president Bart Fletcher said.

In Virginia, less than 10pc of fuel retail locations reported empty pumps, Virginia Petroleum and Convenience Marketers Association chief executive Mike O'Connor said.

"Some Virginians are out of gasoline, a situation that may become more acute in the near term," O'Connor said. "The big box chains are ignoring the shortage and selling every drop of gasoline they can get their hands on,"

Officials in Florida reported roughly 2.5pc of retail sites without fuel, with a majority of dry pumps located in the state's northern counties. About half of convenience stores in the state capital of Tallahassee were without fuel this morning, according to Ned Bowman, executive director of the state's petroleum marketers association. More stores should have fuel later today as delivery trucks replenish supplies, he said.

Georgia's governor Brian Kemp (R) cited shortages across the state as he signed an executive order today suspending the collection of the 28.7¢/USG state tax on gasoline and 32.2¢/USG on diesel fuel through 15 May. "We are hopeful this issue is short-lived and I'm happy to provide some relief for Georgians who are going to see higher prices this week," Kemp said.

US leaders paused some summer gasoline requirements and may waive costlier waterborne shipping mandates to ease pressure on southeastern US gasoline supplies,

Colonial Pipeline has begun a phased recovery from a ransomware attack that started last week. The company aims to restore full service by the end of this week along its massive system supplying nearly half of US Atlantic coast transportation fuels. Colonial expects to know by the end of tomorrow whether it can meet that goal, US energy secretary Jennifer Granholm said today.

By Jason Metko


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