Panic Buying Creates Gas Shortage in the Eastern U.S.
The Claim
Panic buying is creating a gas shortage for the Eastern United States.
News posted on
Emerging story
On Friday, May 7th, a cyber attack on the Colonial Pipeline, a major transporter of gasoline to the Eastern United States, caused them to take their systems offline. News of the pipeline’s supply interruption, incited panic, and people began buying gas where they would not have before. Social media began to speculate that it was the panic surrounding this event that would cause the shortage, not the event itself.
Misbar’s Analysis
Misbar’s analysis shows that panic buying is causing a 14% demand increase in gasoline, which is leading to shortages. Colonial Pipeline is consistently publishing up-to-date press releases concerning their progress on restoring operations. They claim that they are continuing to deliver gasoline to normal delivery points on their system. Ars Technica reports the Colonial Pipeline delivers 45 percent of the East Coast’s gasoline, jet fuel, and diesel fuel.
Government agencies are also coordinating to assure continued gasoline availability. On May 9th a declaration of emergency was issued by the United States federal government allowing and directing gasoline shipments from other parts of the nation to redirect to the affected area and to begin monitoring and altering other operations. North Carolina Governor Roy Cooper issued an executive order to suspend certain vehicle regulations and assure gasoline resources are available. Virginia Governor Ralph Northam issued an executive order to allow for further flexibility and funding to “prepare for any potential supply shortages.” These orders are piggybacking on the United States Environmental Protection Agency's waiver allowing the transportation of gasoline differing from the standard requirements on Reid vapor pressure, allowed by stipulations in the Clean Air Act to assure supply in emergencies.
Regardless of these actions, panicked customers have increased demand for gasoline with some stations reporting selling two or three times the normal amount of gasoline. The hoarding of fuel is increasing prices and decreasing the quantity of gasoline available.
Oil analyst Patrick De Haan (@GasBuddyGuy), who works for the popular gas station pricing locator GasBuddy, showed the progression in the past few days on his Twitter account. De Haan details that the over 14% demand increase for gasoline, while they are working to maintain previous demand requirements, furthers the disruption.
The federal government urges customers to only purchase what is needed. They are continuing to monitor and adjust operations to continue the fuel flowing in eastern states. Panic buying is continuing, however, and tensions are rising as people buy more gasoline than normal, possibly assuring shortages and creating reactions of fear and violence.
