Richmond, Virginia (Monday, May 10, 2021)-AAA forecasts gas prices to climb this week in reaction to the shutdown of the Colonial Pipeline, which delivers approximately 45% of all fuel to the East Coast. Over the weekend, the Colonial Pipeline announced they were the victim of a cybersecurity attack and, as a precaution, shut down the pipeline, which runs from Texas to New York Harbor. At this time, some lateral lines have reopened, but there is no word of when the mainline, including the gasoline line, will be operational.

“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 Morgan Dean, AAA spokesperson. “These states may see prices increase three to seven cents this week.”

The longer the pipeline is offline, the larger the impact on the east coast. However, foreign gasoline imports and other pipelines can supplement Northeastern supply. Other areas of the country will see little impact. On the week, the national gas price average jumped six cents to $2.96. If the trend continues, an increase of three more cents would make the national average the most expensive since November 2014 –the last time we saw average prices at $2.99 and higher. Virginia's average ($2.76) jumped three cents on the week and five cents over last month. 

While there is sufficient gasoline supply in the U.S. (235.8 million bbl), other pipelines and the Department of Transportation’s temporary hours-of-service exemption for tanker trucks transporting gasoline and other fuels, will be able to ease the strain, but not resolve the issues caused by the pipeline interruption. Once the pipeline is up and running, there could still be residual delays as it takes about 15–18 days for fuel to flow from Texas to New York.

AAA will continue to monitor the latest news concerning the Colonial Pipeline. In the meantime, we urge against panic-buying of gasoline. Keep these tips in mind to conserve fuel:

• Plan ahead to accomplish multiple errands in one trip, and whenever possible avoid high-traffic times of day.
• If you own more than one car, use the most fuel-efficient model that meets the needs of any given journey.
• Remove unnecessary and bulky items from your car. Minimize your use of roof racks and remove special carriers when not in use. It takes more fuel to accelerate a heavier car, and the reduction in fuel economy is greater for small cars than for larger models.
• Minimize your use of air conditioning. Even at highway speeds, open windows have less effect on fuel economy than the engine power required to operate the air conditioning compressor.
• In hot weather, park in the shade or use a windshield sunscreen to lessen heat buildup inside the car. This reduces the need for air conditioning (and thus fuel) to cool down the car.

GAS PRICES FROM AAA

Average price per gallon of self-serve, regular gasoline. 
Gas prices provided by AAA, https://gasprices.aaa.com/

Quick Stats

The nation’s top 10 largest weekly increases: Michigan (+15 cents), Kentucky (+12 cents), Florida (+10 cents), Delaware (+10 cents), Indiana (+10 cents), West Virginia (+9 cents), Utah (+9 cents), Texas (+9 cents), New Jersey (+8 cents) and Pennsylvania (+7 cents). 

The nation’s top 10 least expensive markets: Mississippi ($2.61), Louisiana ($2.64), Texas ($2.66), South Carolina ($2.67), Alabama ($2.68), Oklahoma ($2.70), Missouri ($2.71), Tennessee ($2.71), Arkansas ($2.72) and North Carolina ($2.73). 

Oil Market Dynamics

At the close of Friday’s formal trading session, WTI increased by 19 cents to settle at $64.90. Market optimism that crude demand will recover, despite an uptick in coronavirus infection rates, helped to lift prices last week. Prices could continue to climb this week if the market remains optimistic as vaccines continue to rollout. Additionally, prices increased after the Energy Information Administration’s (EIA) latest weekly report revealed that total domestic crude oil inventory dropped by 8 million bbl to 485.1 million bbl. If EIA’s next report shows another decrease in total domestic crude supply, crude prices could climb further this week. 

AAA has a variety of resources to help motorists save on fuel:

• AAA Shell Gas Discount: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.
• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 
• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 
• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 
• AAA's Member Rewards Visa® Credit Card (https://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases. 

AAA is ‘pumping’ up its ‘Don’t Drive Intoxticated, Don't Drive 'Intexticated’ distracted driving campaign by targeting motorists where they are most likely to see it – at gas stations.  The Don’t Drive Intoxicated, Don’t Drive Intexticated messaging can be seen at select gas stations in Richmond, Virginia right on the pump handle and/or sitting atop the pumps themselves.  Everyone is encouraged to take the pledge to drive distraction free via this link and share their pledge on social media tagging @AAAVANews on Twitter or AAA Mid-Atlantic News on Facebook.

AAA is the most comprehensive resource for gas prices.  Unlike the Lundberg Survey of 7,000 gas stations, AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S. 

AAA provides automotive, travel, and insurance services to more than 62 million members nationwide and more than one million members in Virginia.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  AAA is a non-stock, membership corporation working on behalf of motorists, who can map a route, access a COVID travel restriction map, find local gas prices and electric vehicle charging stations, discover discounts, book a hotel, and track their roadside assistance service with the AAA Mobile app (AAA.com/mobile) for iPhone, iPad and Android.  For more information on joining or renewing a Membership, visit www.AAA.com.