US Oil Pipeline 'Hacking Panic' Enters Sixth Day... Some States Declare State of Emergency

(Photo by WSJ)

[Asia Economy Reporter Yujin Cho] Six days after Colonial Pipeline, the largest pipeline operator in the United States, was hit by a hacking attack, the U.S. gasoline price surpassed $3 per gallon. Four southeastern states, which were directly impacted by the incident, declared a state of emergency as panic buying depleted supplies. Although the attacked pipeline has resumed operations, it is expected to take several more days for full normalization.

According to the American Automobile Association (AAA) on the 12th (local time), the national average gasoline price was recorded at $3.008 per gallon. This is the first time since 2014 that the national average gasoline price has exceeded $3 per gallon. Just before the hacking incident, the gasoline price was $2.927 per gallon, and it rose by $0.081 within a week, breaking the $3 barrier.

As panic buying continued due to the gasoline price increase, Florida, Georgia, North Carolina, and Virginia declared states of emergency. According to GasBuddy, a real-time gas station information service, 15.4% of gas stations in Georgia, 24.8% in North Carolina, and 15% in Virginia have completely run out of stock.

Florida Governor Ron DeSantis said, "We are closely monitoring the repercussions of the hacking attack and its impact on our state," adding, "To ensure smooth fuel supply, we will ease regulations on tank size and weight for oil transportation." Georgia also temporarily suspended gasoline tax collection.

Colonial announced late in the afternoon that it had begun restarting the pipeline but projected that full normalization would take several more days. The company stated, "We will transport as much gasoline, diesel, and jet fuel as possible under safe conditions," and explained, "some markets may experience intermittent or ongoing disruptions."

(Photo by WSJ)

CNN reported that the hacker group DarkSide, which attacked the Colonial Pipeline, demanded millions of dollars worth of Bitcoin, but the company refused to pay. Experts analyzed that this decision indicates the company believed it could restore the attacked system without paying the ransom demanded by the hackers.

Allen Liska, chief security expert at Recorded Future, a cybersecurity firm based in Massachusetts, explained, "Immediately after the hacking incident, Colonial forcibly disconnected connections to overseas servers to prevent data theft and leakage, and this proactive measure enabled a rapid system restoration."

White House spokesperson Jen Psaki stated, "The FBI's guideline is not to pay the amount demanded by hacking groups." However, other sources reported that the government did not advise on whether to make the payment.