Why is there a shortage of gasoline in the United States?

Closed gas stations. Cross pipes. Queues of multiple blocks to load a limit of $ 25 or $ 30, just half a tank. Line up so that when you get to the pump, the manager can say, “No gas, no more.” It’s out of gas.

The landscape in the United States, a country where the automobile reigns supreme, is worrying today and can get dramatic: Millions of Americans began pouring fuel on Wednesday because a cyber attack against a fundamental pipeline, which crosses the east coast of the country, is these days causing a great shortage of gasoline and other fuels key to the functioning of the country.

In addition, prices are skyrocketing: Gasoline sold on Wednesday at three dollars a gallon (3.7 liters), a figure that had not been seen for nearly 7 years.

the Colonial pipeline this is a pipeline that begins in Texas and extends approximately 8,800 kilometers to New York and provides 45% of the fuel for the East Coast.

From Houston, it supplies Louisiana, Mississippi, Alabama, North Florida, Georgia, Tennessee, South Carolina, North Carolina, Kentucky, Maryland, Virginia, Washington DC, Delaware , New Jersey, Pennsylvania and New York. It transports about three million barrels per day of gasoline, diesel and jet fuel.

The pipeline was hacked on Friday by a group of hackers known as DarkSide, who broke into their computer system, blocked it, and demanded money to restore access.

Colonial pipeline He said he hired an independent law enforcement agency to investigate and resolve the issue.

The company announced on Wednesday afternoon that service was resumed, but supply could take several days to regularize. The Americans therefore went out en masse to stock up on already exhausted fuel.

In Washington DC, for example, 10% of gas stations are out of stock, according to the specialist site GasBuddy, which tracks prices, demand and availability.

Emergency state

According to the figures for the afternoon, the situation was most dramatic in North Carolina (65%), Georgia (43%), South Carolina (43%) and Virginia (44%). In Florida and Maryland, 11%.

Governors of Florida, North Carolina, Georgia and Virginia declare states of emergency and they have taken steps to relax the rules for transporting fuels by land to alleviate the situation.

But they also face an additional problem, which is that there is a great shortage of truckers of flammable substances, which in this country requires a lot of specialization.

Faced with this situation, the US Secretary of Transport, Pete Buttigieg, urged this Wednesday not to accumulate fuel, during the daily press conference of the White House.

The official stressed that “under no circumstances should gasoline be introduced directly into anything other than an approved vehicle or container”. That is why many have already started trying to collect fuel from drums and other containers.

Buttigieg insisted that the “top priority” of Joe Biden’s government “is to bring fuel to communities in need” and said this incident is also a reminder that “infrastructure is a matter of national security “.

The price is skyrocketing

On Wednesday, the price of Texas Intermediate Oil (WTI), which serves as a benchmark for the US market, opened with an increase of 1.33%, to 66.15 dollars a barrel, the market pending the restoration of operations. by Colonial.

A cybersecurity report published by The Wall Street Journal after Friday’s hack, he noted that “the attacks are increasing in number and scale as millions of people across the country work or attend school remotely, in some cases opening back doors to networks without corporate or institutional security protection “.

The WSJ reported that senior officials in Biden’s government believe the “ransomware,” which encrypts the content of victims’ computers and renders them useless until a payment is made, is the most serious threat to cybersecurity in the United States, and they are pessimistic about the situation in the years to come.

The WSJ said victims often pay the ransom because they don’t have backups or because the effort required to restore hundreds of computers is prohibitive.

A problem for Joe Biden?

The rise in fuel prices, if it continues, will also complicate Biden on another sensitive subject: the inflation, in a country where it is a problem which generally does not worry much.

On Wednesday, it was announced that prices rose 0.8% in April compared to March, especially in used cars, airline tickets and furniture. Prices have not increased much for 13 years: in 12 months, the increase was 4.2%, according to the Ministry of Labor.

The overheating economy could make it harder to approve the massive family and infrastructure investment plan the president is promoting and Republicans rejecting for generating too much public spending.

If inflationary pressure is sustained, the Federal Reserve may consider adjusting rates upward, which could affect credit and investment.

Fed Chairman Jerome Powell has repeatedly indicated that the inflationary phenomenon will be temporary and full employment will have to be achieved before the institution considers raising interest rates.

Washington, correspondent

CB