Pipeline Outage Causes Gasoline Shortages & Higher Prices in Georgia

Staff Report From Georgia CEO

Monday, September 19th, 2016

A pipeline leak has led to a major problem for motorists along the eastern United States. Georgia and Tennessee are among six states that have declared a state of emergency after a leak was detected along the Colonial Pipeline. Pump prices in these states are rising, while some stations have reportedly run out of gasoline. 

The Colonial Pipeline transports more than 100 million gallons of petroleum products like gasoline, diesel, and jet fuel a day, to markets between Houston and New York City. It provides nearly 40 percent of the region's gasoline and serves more than 50 million people. The pipeline consists of more than 5,500 miles of underground pipe, but was shutdown after a leak was detected in Line 1 near Birmingham. Colonial Pipeline announced plans to begin construction of a temporary pipeline that would bypass the leaking section. Colonial gave no timetable as to when that bypass line would be completed or what path it would take.

Georgia and Tennessee are among the states suffering the biggest impact from the shutdown. Compared to last week, state averages are up 16 cents in Georgia and 10 cents in Tennessee. The state average prices on Sunday were $2.26 in Georgia and $2.10 in Tennessee.  

"Prices are likely to rise even further until the pipeline is fully restored," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Once repaired, prices should quickly begin to decline. Motorists are encouraged to follow their normal driving habits and to not draw abnormally large amounts of gasoline from the pump."

The Colonial Pipeline has very little impact on gasoline supplies in Florida. Most of the gasoline in the sunshine state is shipped in by waterborne vessels from refineries in Texas, Louisiana, and Mississippi. The state average of $2.16 is 3 cents less than last week and fractions of a penny less than this time last year.

CURRENT AND PAST PRICE AVERAGES 

Regular Unleaded Gasoline