Monday, September 29, 2025

US passes emergency waiver over cyber-attack on fuel pipeline

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Washington – The United States government issued emergency legislation on Sunday after the largest fuel pipeline in the US was hit by a ransomware cyber-attack.

The Colonial Pipeline carries 2.5 million barrels a day – 45 per cent of the East Coast’s supply of diesel, gasoline and jet fuel.

It was completely knocked offline by a cyber-criminal gang on Friday and is still working to restore service.

The emergency status enables fuel to be transported by road.

A total of 18 states have been granted a temporary hours of service waiver for transporting gasoline, diesel, jet fuel and other refined petroleum products.

They are Alabama, Arkansas, District of Columbia, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia.

Experts say fuel prices are likely to rise 2-3 per cent on Monday, but the impact will be far worse if it goes on for much longer.

Independent oil market analyst Gaurav Sharma told the BBC there is a lot of fuel now stranded at refineries in Texas.

“Unless they sort it out by Tuesday, they’re in big trouble,” said Sharma. “The first areas to be impacted would be Atlanta and Tennessee, then the domino effect goes up to New York.”

He said oil futures traders were now “scrambling” to meet demand, at a time when US inventories are declining, and demand – especially for vehicular fuels – is on the rise as consumers return to the roads and the US economy attempts to shake off the effects of the pandemic.

(BBC)

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