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Gas prices in Bay Area to increase, but not because of Colonial Pipeline

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Updated  May 11, 2021 12:19pm PDT
Economy
KTVU FOX 2

Colonial Pipeline will not affect Bay Area

The shut down of the Colonial Pipeline is bringing concerns of gas price hikes and shortages. California will not be affected, as it produced most of its own fuel at refineries. KTVU's James Torrez reports.

SAN FRANCISCO, Cali - States in the southeast are now bracing for higher gas prices and shortages.

Colonial Pipeline halted operations after falling victim or a ransomware attack affecting its systems. 

Americans expect the pause to raise gas prices and lead to shortages, depending on how long the pipeline stays shut down. Most experts predict the majority of the effects will be on the East Coast. 

California, and the West Coast, will likely not feel a thing. The state produces most of its own fuel through refineries. However, prices in California are still expected to rise, says Sergio Avila, spokesperson for California's Northern District of AAA. 

The average price for gas in the state is about $4.10.

"If something were to happen to multiple refineries in California, let's say they were damaged or had to shut down, that would be what would cause a significant impact on gas resources in California," said Avila.

Around the Bay, gas rose about seven cents from last week. Avila says that's a result of re-openings and a return to pre-pandemic life.

"This time last year, regular gas was $2.76 a gallon," said Avila. "It's a significant increase from then. A week ago, it was $4.05, but you compare that to May 2019, it was $4.05."

The pipeline hopes to restore operations by the weekend. North Carolina has declared a state of emergency and Governor Brian Kemp of Georgia issued an executive action to suspect taxes on gas.