As Local Gasoline Prices Continue Recent Upward Trend, Concern Mounts Cyber Attack on U.S. Pipeline Will Cause Surge

The average price of a gallon of self-serve regular gasoline in Los Angeles County rose Sunday for the 16th consecutive day, increasing nine-tenths of a cent to $4.145, its highest amount since Oct. 22, 2019.

Gas prices have trended upward over recent weeks as Pasadena and the rest of the county have loosened pandemic protocols in response to COVID’s loosening grip on the region.

But now a cyberattack on a U.S. pipeline is causing concern local gasoline prices could surge, just as the economy is struggling to regain its foothold in what increasingly is called a post-pandemic scenario.

The Colonial Pipeline, the largest gasoline pipeline in the country, was taken offline Friday after it suffered what experts are calling one of the disruptive digital ransomware attacks on U.S. soil ever reported.

According to Reuters, the pipeline is responsible for transporting more than 100 million gallons of fuel – 2.5 million barrels – daily through pipelines laid out between Texas and New Jersey. A shutdown has a ripple effect on the entire gasoline distribution system of the United States.

Even before the ransomware attack, the average price of local gasoline has increased 11.9 cents over the past 16 days, including a half-cent Saturday, according to figures from the AAA and Oil Price Information Service. It is 5.6 cents more than one week ago, 17.3 cents higher than one month ago and $1.305 greater than one year ago.

The average price has risen 91.3 cents since the start of the year, mainly because of a run of 59 increases in 60 days totaling 57.9 cents that ended March 21.

The rising prices had been attributed to less supply because production is reduced due to refinery maintenance and fuel demand is increasing, according to Jeffrey Spring, the Automobile Club of Southern California’s corporate communications manager.

“This is a typical pattern that we see during the spring months,” Spring said.

However, the loss of the Colonial Pipeline could act as a price multiplier, because it will further reduce supplies.

The large price increases from one year ago are the result of significant decreases during the early stage of the coronavirus pandemic, when driving and demand dropped substantially because of stay-at-home orders intended to reduce the spread of the virus.