Western Pa. gas prices creep up by 6 to 9 cents; demand likely to climb even as Colonial pipeline reopens

May 13—Western Pennsylvania gasoline prices have crept up by 6 to 9 cents in the past week, and drivers should expect a sustained climb in prices as the nation rebounds from pandemic-spurred shutdowns and more people hit the road for vacations this summer.

Analysts say the uptick can be attributed primarily to the covid-related recovery and seasonal fuel price increases — and not to the logistical issues caused by the largest U.S. pipeline shutting down for five days because of a cyberattack.

In the Pittsburgh region, average gas prices reached $3.13 per gallon as of Wednesday afternoon — up from $2.98 a month ago and $2.19 this time last year, according to data compiled by GasBuddy.com, a Boston-based technology firm that tracks fuel prices nationwide.

"In this case, rising gas prices are a sign Americans are getting back out into the world — attending baseball games, going to concerts, taking a road trip — basically staying anywhere but at home," said Patrick De Haan, GasBuddy's head of petroleum analysis. "This summer may see some blockbuster demand for fuel as well, as Americans find it very challenging to travel internationally, leading many to stay in the confines of U.S. borders — boosting some weeks to potentially record gasoline demand."

Earlier in the day, motorists in some southeastern states were unable to find gas to buy — not because of a shortage of U.S. supply, but because of supply chain problems stemming from the Colonial Pipeline going offline. The company was hit on Friday with a cyberattack by hackers who locked up its computer systems and demanded a ransom to release them.

In some cases, chaos and fights erupted over who would get to fill their tank up as Colonial Pipeline's five-day shutdown stoked fears of a shortage. It caused nearly half of all gas stations in places such as Virginia and Georgia to run out completely.

Colonial Pipeline moves back online

Concerns over what might happen should the shutdown go on much longer were assuaged late Wednesday, when Colonial Pipeline announced it had resumed operations after resolving the cyber threats. They stemmed from its financial networks getting hacked by a Russia-tied cybergang known as known as DarkSide. The attack fueled mounting concerns about the cybersecurity vulnerability of the nation's critical infrastructure.

"Following this restart, it will take several days for the product delivery supply chain to return to normal," company officials said in a statement posted to Colonial's website shortly after 5 p.m.

"Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the start-up period. Colonial will move as much gasoline, diesel, and jet fuel as is safely possible and will continue to do so until markets return to normal."

The Colonial Pipeline runs from the Gulf Coast to the New York metropolitan region, but states in the Southeast are more reliant on it. It delivers about 45% of the fuel consumed on the East Coast.

By Wednesday morning, as many as 65% of North Carolina's gas stations were out of fuel, according to GasBuddy. Just outside Raleigh, two people were charged with assault after fighting and spitting in each other's faces while arguing over their spots in line Tuesday at a Marathon gas station, The Associated Press reported.

Other parts of the country, such as Pennsylvania, have more sources to tap. For example, a substantial amount of fuel is delivered to states in the Northeast by massive tankers that travel up the Atlantic sea coast.

The White House said the Department of Transportation was allowing states served by the pipeline to use interstate highways to transport overweight loads of gasoline and other fuels. But with a national trucker shortage, the industry wasn't able to put many more trucks on the road.

Officials: There was not a fuel 'shortage'

Despite the inability for drivers in some states to buy gas in recent days, there was not an overall supply shortage, according to government officials and energy analysts.

Experts had cautioned the public not to panic-buy and hoard gas, which they warned would make the short-term problem worse by artificially inflating demand.

"There is enough gasoline in this country; we are not under a gasoline shortage; we have logistical and delivery issues," AAA East Central spokeswoman Lynda Lambert told the Trib shortly before Colonial Pipeline resumed operations.

Going into the weekend, Pennsylvania's prices are hovering close to $3.11 per gallon — the eighth highest of 50 states, GasBuddy's real-time price ticker shows. California ranks No. 1 at $4.11 per gallon and Louisiana has the cheapest gas at $2.67. West Virginia, at $2.92, and Ohio, at $2.89, fall in the middle of the pack.

Drivers may have noticed significantly higher prices than this time last year — up by about $1 or so — but that's because of unusually low prices during the nation's confrontation with covid-19.

"Last year, it was an abnormal situation, and we all got a little spoiled, honestly; because demand was lower, prices were lower," Lambert said. "There are so many factors that go into it. Pre-summer is a time when gas usually increases.

"It varies by year, but two factors come into play: We're approaching driving season so the demand increases, and we're also using summer-blend gasoline, which typically costs a little more."

The national average gas price surpassed the $3 per gallon mark, which, as GasBuddy put it in pop culture terms, marked "a milestone not seen since David Letterman still hosted Late Night, Pharrell's hat was introduced to the world, and Kim and Kanye got hitched."

Analysts with GasBuddy expect prices to "settle down to levels more similar to 2018," remaining in the range of upper $2 to low $3 per gallon.

"Should any major refinery issues develop in the midst of the summer travel season," states a GasBuddy analysis released Wednesday, "gas prices could become impacted in a large way, especially if the economy continues to see solid recovery and demand for fuels increases."

The Associated Press contributed.

Natasha Lindstrom is a Tribune-Review staff writer. You can contact Natasha at 412-380-8514, nlindstrom@triblive.com or via Twitter .